Waiting For The Bottom?
If only I had a dollar for every time I am asked, “When will the real estate market hit bottom?”
The real answer is: NOBODY KNOWS.
The second part of the answer is: By the time anyone is able to definitively pinpoint the bottom of this cycle, it will be long past.
So what’s a Buyer to do? Decide what property you want to buy. Gather good data about that local market. Then decide if you believe prices there will fall over the next year. If you do, then make an offer to buy the property based on the percentage you think the market will drop.
Does this strategy work? I’ve advised several customers based on this strategy and it has worked for them. Some 18 months ago, a waterfront buyer and I researched property that would fit their requirements. They believed the market would fall a little more than 20%, so we made our offer based on that belief. The buyers purchased their property at just below their 20% point, and the purchase price continues to hold as the market bottom for this particular kind of property – in spite of short sales, foreclosures and distress sales.
So while others struggle with the discomfort of sitting on the fence, these folks have been enjoying a great property for 18 months.
What are you waiting for?
The real answer is: NOBODY KNOWS.
The second part of the answer is: By the time anyone is able to definitively pinpoint the bottom of this cycle, it will be long past.
So what’s a Buyer to do? Decide what property you want to buy. Gather good data about that local market. Then decide if you believe prices there will fall over the next year. If you do, then make an offer to buy the property based on the percentage you think the market will drop.
Does this strategy work? I’ve advised several customers based on this strategy and it has worked for them. Some 18 months ago, a waterfront buyer and I researched property that would fit their requirements. They believed the market would fall a little more than 20%, so we made our offer based on that belief. The buyers purchased their property at just below their 20% point, and the purchase price continues to hold as the market bottom for this particular kind of property – in spite of short sales, foreclosures and distress sales.
So while others struggle with the discomfort of sitting on the fence, these folks have been enjoying a great property for 18 months.
What are you waiting for?
posted by Jennifer Howard at
10:54 AM
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