What To Do With Your House

 

It’s hard to believe the difference a year can make.  This time last year, the world was practically locked down, and now?  Economies are opening, people are getting back to work and production of nearly everything is running as quickly as companies are staffed to produce things. 

The exact same thing is happening in the housing market. 

Incredibly low inventories, record-high supply costs, and a large labor shortage have all created an optimal environment for homeowners looking to sell their homes. 

Of course, the money they could make as a result of selling their home would likely be offset by the cost of building or buying a new home, but for a select group of homeowners, selling now could be extremely lucrative. 

Are you one of those homeowners? 

There are some things to think of if you might be considering selling in the next two months…

First of all, where are you going to live?  For those who have already bought or built their retirement home, today’s market almost couldn’t be more perfect.  In theory, they’ve already purchased property, or an existing home in a softer market, so selling now is a great chance to maximize their profitability. 

It’s worth noting for anyone selling and potentially planning on living in an apartment or condominium that, due to COVID, evictions were virtually halted, so the available supply is still extremely short and rents have continued to climb in many parts of the country. 

Just how much have construction costs climbed?  Lumber is up nearly 30% from this February!  Appliances – even the least expensive models – are also in short supply, so big retailers are not discounting them for summer sales, or offering financing packages like they usually do.  Even though many Americans have more cash on hand than they traditionally do, they’ve also proven to be more cautious in the last few months as the pandemic has slowed and the economy has reopened. 

So should you sell or hold? 

Well, the short answer is this:  if you will have to have the equity from your current home to buy or build next home, it might be wise to wait it out.  The increased value of your current home is going to be negated in the purchase of a new home, so you won’t “lose” money, but nobody likes to break even.  For first time homebuyers, my advice would have to be to wait until the supply catches up – we’re going to see a small “bubble” in prices that will reset in the next year and, frankly, if you can wait to buy then, lower costs and a better supply are going to make a big difference in both the purchase price and the monthly payments. 

On the other hand, if you’re moving from a “hot” market – California, Atlanta, Arizona, and so on – to a more rural market or a flyover state, then your options for rentals are not only limited, but the money you can make now from selling in these markets will more than offset the slight increase in more rural markets around the country. 

Whatever you do, though, it will be the “right” thing – the key is to spend the time understanding ALL the costs associated with buying or selling now and if that opens you up to other taxation problems or how buying now can yield you additional credits and deductions. 

I can’t answer that in a blog, but I can absolutely answer that in a personal conversation, so if you’re tired of guessing, let’s schedule a call to discuss the best strategy for your home purchase or sale in this market. 

 

 IMPORTANT: Our firm specializes in tax resolution. We serve clients virtually so don't hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, so we can schedule a confidential consultation to explain options to permanently resolve your tax problem. Click here to make an appointment! Or, call Toll-free 1-855-254-1892.

 

 

 

Rethinking The Customer

A lot of folks probably looked at the title of this post and cringed - “Rethinking the Customer?  They’re not the problem!”

I get it, it seems like the wrong thing to do … but it’s not. 

The entire process your business follows, after all, is about the customer, right?  They already exist and they understand, at least intuitively, that your business has set out to solve a specific problem they need solved. 

Your own Dream, Vision, Purpose, and Mission all work together to create your business – and they serve your customers. 

But does your actual business model serve your customers in the best way possible? 

I think a lot of us can agree, if we’re completely honest, that most of us opened our doors before our customer systems were properly built.  Of course, once you’ve gotten that first customer, you’re caught up in serving them, and slapping together systems and processes to hopefully take care of your clients. 

…But what would happen if you could rethink who your client was?  Or how you attracted them?  Or how you handled fulfillment? 

Take a few minutes and think about how your business finds, attracts, and fulfills its roles for your customers.  Seriously! 

How it looks to the customer.

How it acts to the customer.

How it functions best to the customer.

But just as the Coronavirus Pandemic changed how we viewed the world, what insights does this give you, in light of your Ideal Client? 

Have they changed? 

Have their expectations changed? 

Has their trust in the type of business model NewCo is using changed?

Al of these are questions and speak to the very core of entrepreneurship:  Your dream, vision, purpose, and mission doesn’t change, but the way your business fulfills those to your customers does.   

In fact, let’s go back to the Coronavirus Pandemic…

Suddenly, all over the world, business models that had been built on the status quo had no choice but to shut down. 

Deliveries weren’t being made unless things were “essential.”

People in every country were forced to evaluate how their daily lives and routines were putting them at risk. 

Let’s call it what it was – people were terrified. 

Maybe your business was based solely on face-to-face interaction – you KNOW how it suffered in that kind of a climate!  Or delivering a physical product built overseas and dependent upon the existing shipping infrastructure? 

Did your business – at least as you did it in 2019 – survive? 

Are there things you can do – even today – to ensure that your business can survive anything?  Yes there are, because the goal of any entrepreneur is not just to survive, but to thrive!

As I’ve shared this idea with business owners over the last few months, I’ve heard this a lot of times, too…”The COVID 19 pandemic was a once-in-a-lifetime event!  We’re fine now!”

Really?

Think about 9/11. 

Think about the real estate meltdown in 2007-2008.

The Dot.Com bust in the late 1990s. 

The recession that began in 1987.

“Life-changing” events happen all the time, whether regionally, nationally, or globally, and your job, as an entrepreneur, is about creating such an incredible business model that it does survive those “once in a lifetime” events that, obviously, happen every ten or so years…

So, let’s talk about how you rethink your customer.  Instead of looking inwards, though, and picking apart your specific model and ideal client, look outward.  Look at three companies in similar industries to yours and research how they acted – and reacted – in the COVID-19 pandemic. 

I’ll be happy to give out bonus points if you can do the same for the recession of 2007-2008, but since technology has changed a great deal since then, it may be difficult to draw effective conclusions.  Remember, too, in some cases, the so-called Great Recession actually created some of the most powerful companies today in a host of different industries. 

Uber.  Groupon.  Netflix.  Smashburger. 

The truth is, you can build and design your company to survive anything when it is built properly. 

 

IMPORTANT: Our firm specializes in tax resolution. We serve clients virtually so don't hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm, so we can schedule a confidential consultation to explain options to permanently resolve your tax problem. Click here to make an appointment! Or, call Toll-free 1-855-254-1892.