Dockery Blog

I've been reading the headlines in the news lately and have a few comments on my observations about the current real estate and stock markets, and possibly life in general. 

Basically, the problems faced today in the credit markets and stock market boil down to one word - TRUST.  Buyers, Sellers, Lenders, Agents, and other market participants basically have to trust each other when dealing with each other.  That trust is currently broken. 

For example, when you buy a property, you trust that if you are a seller, your agent is working to get you the best deal possible.  If you are a buyer, you trust your agent to get you the best deal possible.  If you are a lender, you trust the appraiser to value appropriately so that there is enough collateral in the unlikely event of default.  If you are an appraiser, you trust, the information given to you by the agent is correct.  If you are an agent, you trust that your buyer or seller are honestly working with you, and capable to buy or sell accordingly. 

The system has checks and balances built-in that make sure everyone does their part to ensure fairplay.  It's the same whether buying a house or the trillions of dollars traded every day in stock markets around the world.  There is a level of trust, that if broken, can cause chaos. 

Unfortunately, some people get greedy, want more than they deserve, and start to play games with the system.  They end up eventually making everyone trust less, and more red tape to be completed in the future by other participants. 

That's where we are right now.  All lot of lenders and investors trusted too much, didn't do their due deligence (research), lost a lot of money, and now the government is going to make it harder for the same thing to happen again. 

Right now, new powers are being considered for the Federal Reserve, with existing regulators being created, merged, or completely abandoned for more modern financial markets.

But, if you listen closely, the same is still true yesterday & today.  You've got to trust who you are dealing with.  In the words of Ronald Reagan when talking about the Russians, "Trust, but verify." 

I encourage buyers, sellers, lenders, and anyone I deal with to verify what I say because I may have inadvertantly obtained bad information.  It can happen to the best, with good intentions.

So we'll watch & see how things turn out.  The trust level with the power players is low right now, but when everyone gets comfortable again, it will eventually create another opportunity for more games to be played.  It may take 50-60 years, but it will happen again. 

I hope you have a good experience when buying or selling real estate.  Nothing brings me more joy than a happy buyer & seller. 

So, remember the real golden rule...Do unto others as you would have them do unto you.  Your life will be a lot happier, and less complicated. 

Until next time,

Richard