Sell high and buy low. This is one of the most famous real estate mantras ever yet a few years ago, lots of people were trying to jump on the home buying bandwagon when money and loans were easy. At that time, they were caught buying in an upward spiral which had them buying the home at the market peak- then it all came tumbling down. So when is the right time to buy in today’s market?
There is no way to tell a client that a market is at the bottom-that this is the very lowest price or that the market will not go down any further- we just have no crystal ball. And we just can’t see it until we are on a real upswing or that we are quite a ways into it. Yet we have people who need to buy homes now. So what do we do?
We guide them to the very best deal possible in the neighborhood of their choice or one that they can afford. Then we make sure we negotiate the best deal possible. For some buyers, the best deal may be that REO or short-sale because those properties are the deepest discounts. In any case the following will always apply.
When considering a home purchase……
1. As in any investment, you hope that you can sell high and buy low.
2. In real estate, COST is more important than PRICE unless you are an all-cash buyer. Think about that…….. what are all the costs in buying a home? Loan costs, escrow costs, inspections, repairs, moving in…… the list goes on.
3. With interest rates rising, the COST of buying a home may increase even if prices decrease. Have the buyer’s loan officer run them some scenarios so they can get a better feel for weather to buy now or wait. As interest rates rise, so does the cost of the home…. and waiting for a 10K price decrease may cost 40K over the life of the loan.
So bottom line is to not be afraid to sell no matter what the naysayers may tell us. There are some people who may try to tell us to wait until the market bottoms out yet none of us know just when that event may happen.