Don't get penny wise and pound foolish! This is one of the best times to buy real estate. Remember "buy low, sell high." It's NOT "buy high and sell low." Yeah, I know too many of you got caught in the "fever" of 2000 through 2005. Remember multiple offers on nearly every property? But it was tough to get listings to sell.
Now, there is a lot of over-priced inventory and few buyers. Those buyers out there are extremely cautious, often buying "down" from their prior expectation level. Some sellers WANT to sell but they are "short," based on what they owe Vs the current value. Now you know what a "short sale" is: "too much month at the end of the money."
Would you believe me if I told you we had 27 offers on one property the other day, and it went under agreement for 30%+ OVER list price? How about one the week before at 11% over list price?
It's all in the strategy. We've developed a market strategy unlike anything I've seen to date, though it has elements of several, and taps into some elements of human behavior models. We're still working and enhancing our model, but it seems to be working well at this time. Not always, but fairly often.
What does that have to do with buying now? Because most sellers and agents don't think like we do. Lucky for you.
Most agents are glum and down-in-the-dumps, which they reflect to their sellers, who in turn are glum. No wonder they can't sell anything at any price. For you though, there is a great opportunity. As in martial arts, use their strength against them. If they're glum, help them out. Save them - make a low offer, and it's because of the "market."
Smart money says, stay in the lower multiple of income to price. I like less than 4 times median income when I'm property shopping. Then you can rent the property until the market changes. Yes you can "flip it" too even in this market. But you can't be "glum" like the rest of the market. You have to be upbeat, be knowledgeable and know your value. Don't believe the "Glumlords" they don't know yet.
After going through 3 complete downturn cycles, we believe we know what to expect. There is no exact timing of the market. By the way, this is a good time to buy stocks too. Everyone is so concerned about the American economy. We're supposed to be headed for a tailspin. We've heard all this before. If you think we're headed for a tailspin, then watch very carefully what the rest of the world is doing. They are VERY worried, since we still consume about one quarter of the worlds annual productive capacity.
It will all work out. Likely sooner rather than later. Watch - you'll see, but buying would be better, then you won't have to say: "if I'd only bought when...."
Chris Michaud
chris@acceptancegroup.com
www.acceptancegroup.com
1 comment:
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