I am becoming more and more convinced that we will look back on this year, 2010, as the year we should have made that real-estate transaction.

What traditionally happens in volatile markets like stocks and bonds (and Real Estate these days) is that most people ask to be put on the bench just when the game gets interesting. Rather than riding it out, they wait it out. A few stay in and make a killing, but by and large most will miss out on the bulk of the gains because they were waiting.

Waiting for what? What is the signal that most people are waiting for?

They are waiting for “most people” to stop waiting.

Sadly that means they will be buying later at a premium price FROM those who were playing the game all along.

I met with a couple yesterday who, in the middle of this down market in East Lansing, MI, are not sitting out.

They have a very nice home in one of the beautiful neighborhoods near the Campus of Michigan State University (Go Spartans!). They paid in the $180’s for it in 2003 and their agent just gave them a current list price of $190,000. That was not easy to hear but it did not stop them from moving ahead.

They then added up how much they spent on that home making improvements over the past seven years. Adding a main floor bath room, extensive master suite work and a new kitchen, all of this was well over $20,000.  That means they would lose money if they sold at $190,000. Still they were undeterred and made plans to list their home.

Their agent then told them that they would not likely get an offer at $190,000 but something lower. The lower lip curled in just a bit at the thought of just how much lower, but then, they pressed forward to find out.

What is it that causes these homeowners to boldly move ahead through all of this bad news?

Opportunity!

The neighborhood they wanted seven years ago but was out of their reach is now on sale.  They can trade up today and afford what they could not afford before.

Seven years ago, the homes on the other side of the neighborhood were going for $290,000 to $325,000.

They just made an offer on their dream home for $205,000 and will likely get the deal at around $215,000.

They are very willing to give someone a $50,000 deal on their old home and sell for $180,000, or even $170,000, and get a nice deal of their own – $100,000 off.

All they had to do was play the game.

What in the world is everybody waiting for?!

I am not one to predict the future of what will stick and what will be a fad. The reason I like this information is that it reminds me just how much opportunity is out there. Anyone can lead, start a business or communicate an idea. It is good to be reminded that in a world that is always moving, if you keep trying new things and keep learning, the future can always hold new and exciting opportunities.

Many are asking the question about how to buy their first home.  Many are in a home and would like to move to another.  Some are interested in taking on an investment property.  Others are concerned about their investment portfolio and want to know what, if anything, they should do in light of the last year’s happenings.  One of my clients is having their fourth child in a two-bedroom home.  More and more, it’s about a job change or the desire to make a job change, or even start a business.  And most often the conversation is an overlap of two or more of these kinds of events or goals.

It’s difficult for any of us to take a non-emotional appraisal of our own situation and see it for what it is, but it’s never been as good a time to do that than it is right now.

My goal in today’s short post is to encourage my clients and readers to make one paradigm shift before approaching any of these life changing ideas and goals.

One simple change in thinking:

Look at THE economy at large through the lens of YOUR personal economy and not the other way around.  Many are coming in ASSUMING that because “things are bad out there” that their situation is bad too.  They are looking through a foggy lens steamed up with media frenzy and “get out of debt” radio ads and are having a hard time seeing their personal economy for what it is.  They look at their situation and only see a lower-value home and a lower-value 401k.  Two values that in the grand, long-range scheme of things are meaningless to most of us.

Well at least 85% of us.  Why 85%?  Well, for the 15% of Michiganders who are not employed (and want to be) their personal economy has real challenges.  But for the rest of us (and even most of you unemployed folks out there) a market like this one spells OPPORTUNITY.

Look for opportunity.  Use your personal economy to take advantage of opportunities in the greater economy.  This is an easier task now than it ever has been before.

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