It was the 2014–2015 NFL football season and the Green Bay Packers, who were favored to win the Super Bowl that year, started the season 1-2. Packer fans were in an uproar. Then quarterback Aaron Rodgers did an interview with the press telling Packer nation they needed to pay attention to five letters. Those five letters were R-E-L-A-X. He went on to tell the faithful that they were going to be OK. That year the Packers went on to be undefeated at home, finished with a 12-4 record, beat the Dallas Cowboys in the divisional round, but lost in the NFC championship game to the eventual Super Bowl champions Seattle Seahawks. So, in a way Aaron was right. The season didn’t start off so great, but they finished strong and were one win away from the Super Bowl.
On an inspirational note, a friend of mine was dying of brain cancer about 10 years ago. I went to see him in the hospital as his final days on this earth were winding down. I wondered how I was going to keep my composure while saying goodbye to him. As I sat at his bedside in hospice, he was conscious and we talked quite a bit; as we continued to talk, I finally broke down crying. My friend, who only had a day or two to live, reached his hand over and placed it on my knee. He proceeded to tell me to just RELAX, everything was going to be OK. He was the one dying and yet he was comforting me. It was supposed to be the other way around and I realized that in the face of death he had peace.
Another time, I was attending my home church, Mission Hills Church, in Littleton, Colorado on a day they had a guest speaker. At the time, this gentleman was one of the oldest living survivors of Pearl Harbor. I want to say that at the time he was speaking he was like 102 or 105. I can’t remember which, and I’m not sure it matters once you’re over 100. He was spending his days traveling from church to church telling his story of Pearl Harbor and his life thereafter. This guy commanded the attention of everybody in the room and I was on the edge of my seat listening to every word he had to say. I thought, anyone who’s lived through that experience and has lived to be over 100, surely has wisdom that I want to hear. He was aboard a ship carrying almost 2,000,000 gallons of fuel used to supply all the warships in Pearl Harbor. If there was ever a ship that was destined to be bombed, it would be a fuel ship. As the bombs fell, the captain rightly commanded the crew to pull up anchor and get the ship out to sea as fast as possible. As the ship moved out of the harbor this gentleman was at the bow as bombs fell on either side of him. He said all he could think of or say in that moment was, “Jesus, I’ll see you in a few minutes,” and in that moment he said he had perfect peace.
The interviewer went on to ask a key, critical question of the guest speaker, “In the 102 years he had been on this planet what was the number one lesson that he learned?” He said, “I learned over my lifetime that 92% of what we worry about on a daily basis never happens.” Let that sink in for a minute! He went on to say, “don’t get me wrong, bad stuff did happen to me and seriously bad stuff, but it only was about 8% of my life.” He said 92% of the stuff he worried about every day, that he thought was a big deal, never happened and he had worried unnecessarily. But the 8% of the time when bad stuff did happen, he said God showed up for him in a big way.
So, you may be saying to yourself, “these are nice stories Dan, but what do any of them have to do with real estate?” Good question. You see there are a lot of people right now doing a lot of hand wringing. Chris and I are having conversations daily with clients regarding:
• What’s going to happen with the economy?
• What’s going to happen with interest rates?
• Is the market going to slow down?
• Is my home going to lose value?
• Are we headed for a recession?
• Should I sell now, or should I sell later?
• Should I buy now, or should I buy later, or should I not buy at all?
When I was at our company conference in Austin, Texas last month the founder and chairman of Keller Williams, Gary Keller, told the audience of 11,000 realtors the following, “the market doesn’t dictate your income, the market just dictates your strategy.”
Truer words have never been spoken. You see, whatever is coming in the next economy or in the next real estate market doesn’t dictate whether you win or lose in real estate it just dictates your strategy. After doing this for 15 years, I realize no matter what the market gives us there’s an opportunity in every market.
If prices remain stable, congratulations, you’re still selling your home at an all-time high.
If prices drop, congratulations, you’re still selling your home after receiving record appreciation to the tune of 25 to 60%, depending on where you live.
If values do plummet, don’t sell, just hold; if it’s a secondary home hold and rent.
If this turns into a buyer’s market, then get ready. Start gathering your cash and put it aside because there’s going to be an opportunity to pick up some incredible properties at a real value.
I’ll say it again, “there’s an opportunity in every market.” Remember, the market doesn’t dictate your income, it just dictates your strategy. So, R-E-L-A-X, everything is going to be OK.
Dan Polimino is the owner of the Hawaii Team in Kailua-Kona, Hawai`i. He and his team are the luxury residential experts for the Big Island. If you are thinking about buying or selling in Hawai`i, then please reach out to us at team@thehawaiiteam.com or call 808-913-0899.
