The Borrow Smart Chronicles - The Market Is Always Right

When it comes to change, we often greet it like an unexpected guest—surprised, a bit wary, and not always ready to welcome it with open arms. After record years for lenders and realtors, we easily find ourselves faced with a cocktail of fear and discomfort and that can lead to a dash of stubbornness about giving up on how we used to do things for what might be needed now. We have a simple saying. The market is always right. We use this to help us immediately eliminate the emotion and fear about what is happening and focus on the fact that if the market is right, how can I be right? To be right I need to align with the market and what's happening now, and to do that I need to conserve energy wasted on wishing things would magically get better.

Here are things you might have to overcome, but you have real-world experience overcoming gravity all day long, so you can do this too!

1. Fear of the Unknown: Let’s face it, we like our routines and knowing what comes next, so when change looms, it feels like you are climbing a tree in the dark. One flip - be afraid of the known. Business is tougher and that means I work harder and smarter.

2. Loss of Control: Much like being a backseat driver, change can make us feel we’re not in the driver's seat anymore. Were you ever, really? One flip- decide now that you will control what you can: your work effort, your willingness to learn, and your acceptance that things are happening for you, and not to you.

3. Comfort with Current State: Moving from our cozy spot can feel like a Herculean effort. Maya Angelou gives a nudge here, suggesting that if the mountain of change seems too steep, maybe a slight shift in perspective—a change in attitude—can be the first gentle step. One flip - use the Pringles concept of motivation and take many small steps each day instead of trying to take one huge step.

4. Identity and Values: Delving into change can sometimes feel like trying on a new outfit. Will it fit? Does it reflect who I am? As Tolstoy wisely points out, the most profound changes often start within ourselves. Let go of the idea of your old self, and start anew. One flip - ask yourself what behavior would the new you be taking right now to be better?

5. Cognitive Biases: Our brain can be a bit of a trickster, making us prefer the devil we know over the angel we don’t. It’s like favoring an old, comfy pair of shoes over new ones that might need a bit of breaking in. One flip - everything compounds, and learning one new thing a day is enough. Your pay raise becomes effective as you become more effective.

Embracing change doesn’t have to be a solemn promise; it can be more like agreeing to dance—even if you’re not sure of the steps yet. By keeping communication clear (with yourself), being patient but assertive with yourself when needed, and surrounding yourself with people who think differently than you do, you’ll start to see change not just as necessary, but as an exciting part of our journey.

After all, life would be pretty dull if everything stayed the same, wouldn’t it?

a BORROW SMART CONCEPT
Location, Location, Location

I had an interesting question from a CLA about this issue of waiting to buy a home when prices go down, versus buying now and possibly suffering a loss. Here’s the tail end of the situation question:

“Prices are irrational. It sucks. What else can you do? Hold your nose and jump in.” seems cavalier. But waiting for mean reversion (prices to drop to a point where they make economic sense) feels equally wrong-footed…”

My answer: Great question set, and setup… agree with the question you lay out. You know you’ll pay to live indoors, so the question is to rent or buy? Assuming you don’t want to rent there must be a reason, and those reasons are probably part of what drives their answers to these two questions:

What are their emotional reasons for buying a home?
What are their logical reasons for buying a house?

Ask them to list those out, and then ask what is more important for you the house or the home?

If their real driver is home, then the price is a consideration relative to qualifying but not so much the driver for go now or go later. You go when you are ready to go.

If their real driver is the house, then price is the major consideration as they are looking at it primarily as an investment. We know location, location, location is the key driver for appreciation, as even in bad markets there are locations where houses go up in value, and vice versa.

That’s one answer. there are many more… What would you say to them?

Short Answer: What is your time frame?

This is one of the most powerful, yet simple ways to get that across to a prospect:

LIABILITIES and DEBT
What’s Happening.

It’s a tough crowd out here…

REAL ESTATE
What’s Happening?

ASSETS and INCOME
What’s Happening?

JP Morgan - This first resource is solid, and I recommend you review it yourself and save it as a resource for clients and family members.

ON BEING HUMAN
What’s Worth Sharing?

DOPAMEMES
And Other Happy Moments…

I remember this ad, still amazing to me (circa 2003)

Artificial Intelligence
And the Future of Work…

Have that graduation photo with a watermark you don’t like:
https://watermark.phd/en

Turn your youtube video into a step-by-step instruction guide:
https://stepify.tech/

Facial recognition can offer predictive insights:

Borrow Smart University || National Institute of Financial Education