The Opposite of Everything is also True!

It used to be the title of some old song or book somewhere, but lately, as I read the news and the financial advice columns almost in every newspaper or information source, this sentence comes to me again and again: the opposite of everything you read is also true. In other words, challenge everything you hear (and read).
Here are my three choicest examples of some commonly believed myths:

1. Real estate in Sacramento is dead: True, but only partially. For one thing, this is only in a certain price range. Homes above $500,000 have seen almost no change. And, if you're a first-time buyer hoping to strike a deal, the nest price range for you is in the $200,000 - $350,000 range. Don't think about buying anything in the fab 40s though unless you want to pay full price. It is the only neighborhood in Sacramento where the prices have not fallen. TRUTH: There's money to be made in every market. People buy in every market and sell in every market.

2. Realtors are cutting their commissions because they are "hungry": Again, true but only partially. (I am absolutely incensed by the number of articles out there trying to still say that realtors do not deserve the money they make. Read my article "Why Pay 6" for that.) But really, the fact that there is a glut of real estate agents out there makes no difference to the good realtors. There is a huge difference between licenses and active realtors. Just because someone has a license does not mean they are selling real estate. And chances are, if your realtor wants to cut his commission, he doesn't think he's worth the full 3% (which is the only part he gets, by the way - one side!) It's a sad fact that in the first year of real estate most realtors are practiced upon by their friends and relatives. That's where the high priced, low commissioned homes come from.

3. Now's the time to get out of the real estate market! I wish I could meet the person who propogated this one! As I always tell my clients, IF YOU DON'T HAVE TO SELL, DON'T! Sit on the property for another seven years or so and I can almost guarantee it will be worth more than what it is now. The time to sell was two years ago. The boat has passed. But hold on to it if you can. Real estate is cyclical. Mark my words and remember who to thank in 2014.