When Michael Douglas’s character made this quip in the 1988 film Wall Street, he probably did not realise that it would become one of the most memorable lines ever to come out of Hollywood.
Twenty years on, it seems just as relevant today as it did then.
I work in an industry that has a tendency to operate on greed. Not for everyone – but for some.
The funny thing is that even though it is an important part of the psyche which makes the “real estate wheel” turn – it is also the factor that most often prevents it from moving.
This paradox has never been borne out more than over the past few weeks as I reflected on the events that have led to the downturn in the world economy.
It was greed that was the driving force behind millions of Americans to enter the real estate market between 2003 and 2005.
It was greed that inspired the American Banking executives to offer loans to these people – when their capacity to repay the loans was always going to be tenuous.
Greed is also the problem getting in the way of our own levelling market in WA.
Owners have not heard that the market has slowed and are holding out for the growth and prices of 12-18 months ago. Such attitudes invariably get in the way of the negotiation process, and lead to properties still being on the market several months later.
Buyer greed has also played a role in the present state of affairs. Ridiculous offers, very often kill negotiation before it even begins.
What is required in this present market is a level head. If you want to sell, recognise that there is a lot of choice on the market for buyers and make your home as attractive as it can be – both in terms of presentation and price.
If you want to buy – don’t start hundreds of thousands under the mark. Make an offer that says that “I am genuinely am interested in purchasing this home from you” – let’s do a deal.
Jamie Harrington
Director
Altus Real Estate