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This might sound odd but my latest interest is how neural science and brain function relate to the transformation of one’s life. It turns out we deal with unwanted emotions in a backwards fashion. Most of us think that if we hide an unwanted negative emotion, we protect ourselves and those around us from the impact or consequences of that emotion. That couldn’t be more wrong.

Suppressing emotions involves the pre-frontal cortex or “working memory” part of the brain. Since we don’t have much RAM to work with anyway, suppressing emotions takes more energy and burns more glucose. As a result, the emotion strengthens, memory diminishes, and interestingly enough, the body radiates these changes in a way that anyone close by can experience.

Drop me a note if you want to hear more. Talking about it helps me deepen my own understanding, and I’ll give you some new topics for cocktail conversation.

A buyers market is defined by Investor Words as “a market which has more sellers than buyers. Low prices result from this excess of supply over demand. also called soft market. Opposite of seller’s market.” Before you go following all those links, as interesting as they may be, consider some of the conditions we now confront. That way, each of us can get the chance to make our own conclusion and take action accordingly:

Real Estate Availability - Currently inventory is considered to be lower than normal. What in the heck does that mean, really? Well, a certain percent of any population must buy and/or sell at a given time for reasons within and outside of their control, so available homes should be sufficient to satisfy that demand.

Motivated Sellers - More than half of what is on the market is owned by banks or institutions that do not have the same decision-making process or motivation as an owner would. This decreases or eliminates the motivated seller.

Mortgage Financing - Given consumers’ current financial situation and mood, it is unlikely someone would be able to or want to pay all cash for a property. As a result, they need financing. In this highly regulated environment, recent changes now required of institutional lenders will likely exclude 70% of the population from getting a mortgage.

Future Value - Prices are at a low point and likely to stay there for several more years, until the economic recovery establishes itself and real jobs return. This being the case, the motivation of profit and gain are reduced as factors for individuals or investors buying property immediately. People are looking at a much longer timeframe now.

The American Dream - Ahh, home ownership, the coveted desire of every American family. To have a castle you can call your own, do what you want with, in which you can flourish, prosper, and raise a family.

This is from Wikipedia: “The American Dream is a national ethos of the United States of America in which democratic ideals are perceived as a promise of prosperity for its people. In the American Dream, first expressed by James Truslow Adams in 1931, citizens of every rank feel that they can achieve a ‘better, richer, and happier life.’^[1] The idea of the American Dream is rooted in the second sentence of the Declaration of Independence^[2] which states that ‘all men are created equal’^[3] and that they are ‘endowed by their Creator with certain inalienable Rights’^[3] including ‘Life, Liberty and the pursuit of Happiness.’^[3]

Reading all this, did you find yourself experiencing one or more negative emotions? I admit you could easily conclude from all this that it might be better to avoid the current real estate experience. I suggest you create a more positive outlook for yourself. This is one of the greatest times in history to purchase real estate in any location in the country that fits your budget. You can own a home free and clear for less than $10,000.

Private sellers are an extraordinary financing resource right now because so many buyers cannot get institutional financing. The American Dream is alive and well, economic recovery is in progress.

On many occasions in my career as a mortgage lender things would get tough, break, or just not look so good. I’ve always been one to look for the good in people and find a way to smile or laugh, and get back to being inspired. In my years at First Horizon, Kevin Cavanaugh was one of those friendly people that I could go to when things didn’t look so good. I knew, always, that Kevin would have a smile or engage in a friendly uplifting conversation. After leaving his office I always felt better. He does that for his clients, he does that for his family, and if you need financing from Bank of America, he will do that for you! Kevin is an awesome practitioner and a professional of the highest quality.

Kevin Cavanaugh
Bank of America
Senior Mortgage Loan Officer
Retail Mortgage Sales

Office: 408-615-6058
Direct: 408-356-2506
Fax: 888-665-0449
kevin.cavanaugh@bankofamerica.com