Sieze an Opportunity!
Ok, so let’s start with the fact that over the last 40+ years I’ve been a buyer, seller, and Realtor. Thus, there are things I’ve noticed where there is a stall in the market, a little like right now. When Interest rates are not dropping as we hoped, what happens? The lenders come up with loan programs (many paid for by sellers – which does not happen in a seller’s market) that allow you to have a lower than today’s rate interest rate (by 1 or 2%) for one or two years and allow you to qualify at the lower rate for a home purchase. There are some zip codes with government grants for down payment from 5% to 20% for qualified first time buyers. One of our homes just sold under this program. Sellers entertain offers with credits for closing costs if you are short on the down payment. These things do not occur in a Hot Seller’s Market.
Lastly, the untapped gems that are being missed would be great homes. What are the gems? The homes that in previous markets would be gone in a week, some of them are still unseen, and available? Just review the comparable sales for last year, many of the gems are priced under the last year pricing! Is it true in the stock market you hope to buy low? The same is true with real estate. THIS is LOW! THE PERFECT home with tons of updates is still going to sell fast, probably with multiple offers and maybe over asking! If you are stretching your budget and want a credit for closing costs you are likely not going to get those there! Consider the gem, on the market over weeks, to 30-60 days, the sellers are typically more flexible and prices are under last year’s pricing in some cases. (News Flash – Stock market and real estate market rise and fall with the economy.) Many of these sellers would consider crediting closing costs and/or a buy down loan for a buyer.
REMEMBER location, location, location is key in real estate. Buy the worst house in the best location we used to advise. Buyers have become focused on “perfect.” IF you are waiting for “perfect” you might miss almost perfect; or waiting for the “lowest price,” you won’t know when that is until prices are on the way back up. Just think, you could have been in that home a year by then? I only say this because we meet these buyers all the time. When a buyer says they’ve been looking for 9 months – they are looking for something that is not there. They often saw the place they’d have been happy with and had analysis paralysis and now compare everything to that. If they’d bought it, they’d have been home long ago probably at a different price. There is no perfect home, no perfect school, no perfect neighborhood. There are good things about all of those, but fear of missing “perfect” is causing you to miss out on future equity and the comfort of owning your own home. Purchasing a home is about seizing an opportunity.
