Posted by Maureen Loeb, REALTOR® with RE/MAX Realty Affiliates
Many Buyers are sitting on the fence, waiting to buy at the bottom of the market. Although this sounds like a sound strategy, it may not be the optimal approach. The first problem is determining the timing of the bottom of the market. In realty the bottom can only be identified after it has occurred making it difficult to strike at that exact moment. Next, once the bottom has been proclaimed there will be lots more competition for the most desirable homes. So, instead of waiting and hoping to catch the market’s bottom I suggest the following strategy:
· Make your best guess as to the earliest and latest dates the market will hit its bottom (i.e. 2 months to 6 months – this is your bottom time range.)
· Find your dream home in your target neighborhood
· Ask your agent to do a pricing trend analysis for that specific neighborhood and price ban for the bottom time range to determine the projected price decrease ban.
· Make an offer using the projected price decrease ban to adjust your asking price.
By factoring in the future price decreases you can buy your dream home now with little competition and plenty of choices. Have you ever seen a sensational dress in a store, but decide that you didn’t want to pay retail price, and would check back during a sale? Most likely when you returned to the store the dress was gone. Too bad you couldn’t use this strategy with Macys! Don’t let that happen with you dram home! Is it really a good deal if it isn’t exactly what you want? Also, please keep in mind that in addition to being an investment, your home also is the place to raise your family, share holidays, and create memories. Get ahead of the pack and get the house you’ve always wanted.