“I am going to wait until the market bottoms out to buy.”
Is there ever a perfect time to buy? Yes, when you need or want to move. I hear it quite often … “I am going to hold off until the market bottoms out.” But what you don’t realize is that when the market “bottoms out” it usually means its already starting to turn around and with that can come stiff competition when making an offer to buy the home of your dreams. Everyone tends to scramble to get the best deal at that point, leaving you contending with multiple offers on the home you want — and before you know it, poof … it’s a seller’s market again! Opportunity is lost.
“I am going to wait to see if the rates go any lower.”
Rates are currently hovering around 5% and under if you have a decent credit score! These rates are historically low! I’m sure you’ve heard the saying … “You snooze you lose.” Rates are starting to go back up so any future price decreases in homes for sale may just be a wash … think about it … if the interest rates climb, you are spending thousands more over a long term mortgage … who out there likes giving the bank extra money? Not me!
Home prices do not necessarily coincide with interest rates. For example, even if the home drops in price and the interest rate goes up, you lost money in the long-term. Rates are low NOW and Spring is the busiest marketing time of the year … Why? Most people like to do their moving when their children are out of school and before the school year begins plus they have the additional cushion of their income tax refunds. If I my real estate crystal ball is correct, I predict a busy spring this year … so maybe it’s time to think about jumping off the fence?
Thinking about buying? Check out my BUYER’S TOOLKIT!
“Sellers are desperate.”
I am really not seeing this in certain markets and locations. While some markets have been hit hard, Real Estate is still all about “location, location.” Real Estate is VERY local; markets vary across the country and from town to town. Here in Philadelphia and its surrounding suburbs I am finding that most sellers are really NOT desperate at all. Unless there is some unforeseen disaster or the property is a distress sale, sellers are not as desperate as the media would have you believe. So as the old school 80’s song goes … “DON’T BELIEVE THE HYPE!” (Public Enemy)
In fact, Philadelphia and it’s surrounding suburbs have not been hit as hard as the rest of the country. Overall, we have only seen a slight decrease in home prices as compared to other states and now that Spring is around the corner and interest rates are still low (but on the rise), I am seeing a huge increase in activity, even multiple offers on properties again!
Sellers still need to do their best to make their home marketable and to keep it in tip-top shape to compete with the other properties for sale in their area. Pricing the property well is key and always take into consideration the way the home shows compared to other properties on the market if you cannot afford to fix up the home to show.
For some tips please check out my SELLER’S TOOLKIT! Thinking of selling? Now may be the time to go for it!
Ready to Make a Move? Contact Me Today!
Kim Schreiner, ePRO, SFR, Realtor
RE/MAX Affiliates, NE
The #1 RE/MAX Office in the City of Philadelphia