OpinionIndustry News

Time to let go of old thinking

Perspective: Hot-market habits are now outmoded

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Letting go is hard to do, but giving up outmoded ideas and behaviors is exactly what's needed throughout the real estate sector today. Home buyers, home sellers and homeowners need to let go of unrealistic expectations, while Realtors, mortgage brokers, lenders, home builders, real estate technology companies and even real estate journalists need to let go of dysfunctional business practices that aren't applicable to today's markets. Home sellers need to let go of quick sales and contingency-free purchase contracts, and multiple-offer, bidding-war, rising-market pricing. They need to be ready to negotiate both the price and terms of the deal, and they need to open their minds and wallets to home repairs, redecorating allowances, lease-to-own contracts and other buyer-friendly strategies. Buyers need to give up no-documentation "liar" loans, no- and low-down-payment mortgages, minimum "option" mortgage payments and negative amortization that turns diminished equity upside d...