AS market experts, economists weigh in on their opinion of bail out or other plans, I hope it chosen with common sense. Any person knows that prices do not go up forever and that the interest rates do not continue to go down to zero. The real estate market is not like a bouncing ball although it sure seems like it in the past couple of years. It goes in cycles and there is always movement up and down not peaks and valleys. Real estate is probably the best long term investment a person can make. Presently NOW is a good time to make your investments.
As Warren Buffet states “Be fearful when others are greedy and be greedy when others are fearful” certainly also applies to real estate. I have some advice for both sellers and potential buyers…
Sellers: We have been on the downward cycle since fall of 2005, yet many sellers have chosen not to listen to their realtors, whom they have hired to market their property as experts in the area, and still want to price their homes at 2004 prices. This is just NOT going to happen NOW, it did not happen last week or month nor will it happen next week or next month. Wake up smell the coffee! If your agent has not been telling you this firmly and politely and has just acquiesced to you and your numbers etc. get another agent who wants to MAKET YOUR HOME and NOT THEIR NAME and wants to have the transaction CLOSE. By the same token if you have a strong agent who has been in constant communication and you know in your heart of hearts that the agent has been marketing your property to its fullest, now is NOT the time to jump ship to another agency. Sit down and talk with your agent and perhaps include the broker so you can brainstorm. Both the agents and their companies spend a lot of money marketing your property and jumping ship to another agency is definitely not going to work especially if the house is not priced correctly to the current market it will not be right with the other agency either. IF the house does not show well now it will not show well with the other agency either. Same thing with showing, NOW is NOT the time to be difficult in arranging showing of your property with buyers. They are scarce and much more competition to look at. Make sure you can get the buyers IN to SEE your property WITHOUT OBSTACLES. Such things as try back tomorrow, pick up the key at the office, 24 hour notice etc. just push your buyer and their agent away from Your property to a competitors property that is much more “buyer friendly”. Are showings inconvenient? Your darn tootin they are. Are you interested in Selling your house? Then that is just a by product to get the house SOLD and your tough and strong agent should be telling you that!
Buyers: Opportunity is knocking! Hello can you hear it? Low interest, lowering prices! Don’t try to calculate when the bottom will drop – it could be now, tomorrow, next week or in 6 months from now. Whenever the bottom drops it will be useless knowledge when the interest rates have gone up. The Fed will not lower the interest rates forever. What goes down must eventually go up. In fact during past recessions the interest rates went sky high. Now is the time to make good deals, like other investors. Just remember the WHOLE not the piece- real estate is along term investment, and when it works as a short term investment- that’s a beautiful thing. Remember do NOT buy above your means, don’t borrow on tomorrow’s pay raise. There is much more to choose from today than in previous years and there ARE lenders that are lending money NOW. Not all banks have lost their heads about lending money to qualified buyers. When you find the house that speaks to you sit down brainstorm a strategy with your agent and make an offer. Do not worry about whether this is the right thing to do or not, again this is a long term investment and chances are it is the right thing for you. I have had buyers who were worried that they were going to miss out on that one special house, special price etc and have waited too long and lost the house that spoke to them in the first place. Remember there will ALWAYS be other houses that come on the market, that may be better, be priced better etc. but will the time be RIGHT FOR YOU?
In short whether you are a buyer or seller, be smart, use common sense and a strong and tough agent who will negotiate on your behalf, now is not the time for the timid and meek, and it is definitely not the time for inexperience or less than a full time commitment from your real estate professional.