May
1
Buyers Market - Is Now the Right Time for Every Buyer
Posted by Renee Medema under For Buyers, For Realty Professionals, For Sellers, General Information
In a recent article “Is It Time to Buy Real Estate?” written by Vicki Gerson at Bankrate.com, Vicki provides statistics from Standard & Poor tracking that shows prices down 7.7 percent nationally in November 2007. She also provides statistics from the National Association of Realtors that reports sales of single-family homes down by 13 percent in 2007.
If the average home price is down and sales are down as well, should a buyer automatically assume that it’s the right time to buy? Buyers markets and sellers markets have varied drastically over the years based on financial advisors opinions. Some stages in the economy offer higher promise for an upswing and other stages are more difficult to predict. When we make decisions related to real estate, do we base our decisions on our opinions of what is best for us or do we base decisions on other people’s opinions of what is best for us? If you haven’t asked yourself the question before, now is the time to ask this question.
People’s opinions vary greatly when it comes to financial and investment markets. A good piece of advice worth noting is to take everyone’s opinions and then form your own based on your individual circumstances. When buying your home, buy a property that you want to come home to so to speak. You should feel comfortable and proud of your home and there should be plenty of room for you, your family and an extended family if planned in the near future. When buying an investment property, buy a property that will yield a profit. The larger the profit, the better the investment as long as it is within your budget. The proposed idea seems simple enough, but often times people try to do too much at the same time and purchase a home (primary residence) and then attempt to yield a profit from it similar to an investment property.
Today’s market does not provide an easy-to-determine swing and because of that, a good recommend would be to purchase property only if you are purchasing investment property. Whether you are buying a second home or a property that you plan to rent, this is the perfect market to add to your real estate investment portfolio. On the other hand, if you are planning to upgrade your primary residence and are hoping to buy a larger reduced price home that will require a contingency to sell your current property, today’s market is not going to be friendly. The time to upgrade your home would be when you have a large amount of equity built up and it is a seller’s market. The substantial equity in your current home in addition to the top dollar that you will get from the sale of your home will put you in a great position to negotiate a larger home of your dreams.
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