I read a good article a while back that was really aimed at motivating real estate agents in a tough market, but it made some very strong points for buyers and sellers, that I think are relevant to transactions nationwide. I have pulled out the key points below but have also linked to the Joe Klock article in it’s entirety, here.
Thinking Points for Buyers
- The doom and gloom you’re hearing about in the mass media should not affect your decision to act if you are ready, willing, able and eager to do so.
- Prices may still go lower, but as soon as they hit bottom, they will rebound with a vengeance, quickly wiping out any advantage you might gain by waiting.
- Right now, you have an unusually wide selection of properties to choose from, including those owned by people highly motivated to sell immediately.
- With so many potential buyers holding off, you have a much smaller number of people competing with you for the available properties.
- When the turnaround comes, those “waiters” will be your competitors, making your offer less attractive to those selling their homes.
- Financing is still available at historically low interest rates, but are sure to escalate when activity resumes at more normal levels.
- Even if you SHOULD pay a little more than you would if you actually hit the “bottom” of the market, normal appreciation would make the difference irrelevant within a few short years.
- If you as an individual ARE ready willing, able and eager to make a move, the time for action is NOW!
Thinking Points for Sellers
- What you might have sold for a year or two ago is irrelevant. Properties sell for the best price obtainable in the CURRENT market – and not a dollar more.
- If you sell for present market value, even though the price is less than it would have been in the past, you can reinvest at the same relatively lower range.
- If your present property has appreciated in value over the years, a reduced price affects only “paper” value, which you never actually realized.
- If you genuinely want to sell and have a good reason for doing so, there is little to be gained by waiting for “things to get better,” especially if you’ll be reinvesting in the same market.
- If your home has been on the market for a considerable period of time and is not attracting the attention of prospective buyers, it is OVERPRICED (end of sentence).
- If you are unprepared to accept the best offer obtainable from the best buyer available in the present market, you should NOT list your home for sale!