Just because you don’t control rates doesn’t mean don’t prepare
A little after lunch Wednesday (about 1:00 p.m. Central), the Fed will announce what they’re doing with rates.
Most folks expect a cut. We’ll see.
Most of us aren’t economists, even if we like to think we understand what’s “best” for everyone. Funny how what’s “best for everyone” often looks a lot like what happens to be best for us at the moment.
If you follow real estate at all (and you’re here, so I bet you do), you know a lot of people have been hoping for a rate cut. Buyers want lower payments so high prices feel tolerable. Sellers are hoping those “cheapskate buyers” finally quit asking for discounts and pay the number.
I’m not big on discounts myself. Depends which side of the table I’m on tho (I guess).
Big picture, none of this is in our control. Spending hours tracking every political angle, conspiracy theory, and tea-leaf reading is a waste.
You have a life to live. Execute to the best of your ability, regardless.
Also worth remembering: today’s rates are pretty normal in historical terms. Maybe even a bit low. It just doesn’t feel that way to folks who came of age after 9/11 and only saw ultra-low money.
(yes I’m old).
So how do you handle Fed Day?
First, don’t obsess. Operate the same either way. If they don’t cut, carry on. We’ll be in more of the same, and the playbook doesn’t change.
If they do cut, don’t be surprised if some people move quickly—especially in the custom home lot segment. Single lots can go from “thinking about it” to “go” much faster than a subdivision or a big rural tract.
Development land and rural acreage usually lag a little. Not always. But usually.
If you’re buying, assume you’re not the only game in town. The best lots go first. If a lot looks like a good deal to you, it probably looks like a good deal to someone else. Be first. Have your financing lined up, your questions ready, and your offer clean.
If you’re selling a lot and sat on the sidelines during the slowdown, this could be your window. Get pricing dialed. Have the paperwork ready so a real buyer can say “yes” on the spot. Any pop could be short-lived—prepared sellers win the moment.
None of this is pressure to take less than you want. It’s a reminder to act when the window opens.
You can’t control the Fed. You can control whether you’re ready.
You know what to do.
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