Do Not Fall in Love With It
Falling in love with someone or something can give you a natural high. TED Talk guru, Helen Fisher, found through her studies that falling in love creates a biological or natural chemical high from dopamine—a neurotransmitter that helps us feel joy. Simply put, thinking about your loved one or loved-thing causes a flood of dopamine throughout your body making you feel overwhelmingly giddy and happy. This feeling of being in love is the key in human connection; we desire to be loved and/or to love someone.
This same dopamine love-high can also be experienced when falling in love with things: retail therapy shopping, working out, your favorite sports team having a huge win, making a big sale if you are in sales, and so on. It is pretty easy to fall in love with things when they create that joyful sensation. That being said, I personally have a rule to not fall in love with things or assets I own. I see this far too often; businesses and property owners become so attached to their baby or asset that they cannot sell it when the timing is right. They become so emotionally attached to this particular thing that they cannot part ways with it resulting in losing windows of opportunity.
The emotions and thoughts that keep you engaged and in love with your significant other are something to be cherished; but when you apply and transfer those same feelings to a thing or an asset, they may work against you and hinder your growth in business or investing in better opportunities. I have seen this firsthand. The result? Many homeowners and investors are being held back. An example to illustrate this could be something like this:
Happy homeowners live in their family home for 20 or 30 years. In this home, they have raised a family, had celebrations of all kinds, and created many amazing memories throughout the years. Now, the kids have moved out, the neighbourhood has changed, and crime has increased; however, these homeowners will not move because they are holding on to the emotional love affair of the past. In turn, they have missed the best time to capitalize on the sale of their home or asset.
This love affair is even more prevalent with real estate investors. In fact, I personally have been caught in a love affair over an investment property and unfortunately hung on to the property longer than I should have. It was a commercial office building and I knew that the market was shifting. Logically, I knew it was time to sell, yet emotionally, I was still in love with the building. Being caught up in the emotional side of things, I thought I could easily re-rent the building and all would be well with my emotional connection to this property. Long story short, the building was still vacant after 4 years, so I took a loss and got out of a bad deal.
Do not keep emotionally feeding a bad deal or a bad property. Do not fall in love with it! While it is important to be satisfied with whatever your asset may be—your own personal residence or an investment property—you do not want the emotional attachments to get in the way of making important decisions that could greatly benefit you. Do an audit, or more importantly, have someone (realtor, financial planner, accountant, business consultant) do an audit on your property(s). Is it time to cut your losses? Is it time to let something go? Both of these questions will be easier to answer if you first cut your emotional ties.
Covid-19 certainly has been messing with our emotional psyche and well being. I have fielded so many client call’s over the last couple of months as to what I anticipate will happen in the market and what they should be doing. As I review the Fraser Valley stats for May, I find them very similar to last month. Inventory or listing count is down between 30-40% depending on the city and property type. And, sales are very similar with sales volume down about 50%. However, the Vancouver May market was a surprise and experienced an uptick in sales volume from May of 2019. While the listing inventory was down considerably from last year, creating a stronger market than any of us expected. Most sell through rates (STR) for May are in a Buyers’ to Balanced market with the odd townhome area pushing into a Sellers’ market. June will be very interesting to watch as we move out of the lock-down.
Is it time to do an audit on your property or portfolio? Is it time to cut your losses? Is it time to let something go? Or, is it time to be searching for the next home or investment property? Whatever your thoughts are, it is easier if you can leave your emotions in check. Give our team a call to walk you through your options and help you with your property and portfolio audit today.
Click Below To See The Fraser Valley Stats:
Click Below To See The Vancouver Stats:
STR (Sell Through Rate) Formula = Sales ÷ Active Listings + Failed Listings + Sales
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