Market on the move?
I’d
have to say that the #1 question I get asked is “so… when do you think the
market’s going to come back?”, and while I don’t have the proverbial crystal
ball, I do have a gut instinct that we’ll start to see increases soon. If this Nostradamus like prediction
is correct, how should buyers and sellers prepare?
Seller Preparation
The
best thing you can do as a seller in the midst of a recovery is dig in. Be honest with your value and
understand that homes with upgrades that are well cared for and move in ready
carry a very strong premium in these times. If you’ve got what people are looking for, be sure you
price correctly to maximize your profit. Selling in a short time may be fun to talk about, but
selling fast in this market is generally a red flag of an undervalued
property. Be sure to do your
research, or be sure your listing agent does so for you. What is your competition, and what are
buyers willing to spend in this
market for your home? Find,
understand and stick to Fair Market Value. It may be higher then you think.
Buyer Preparation
I’ve
run into some very savvy buyers recently.
Buyers with good knowledge of what the market is doing and how to act
accordingly. This in general is a
good sign for the market. Educated
buyers are finding and obtaining great deals because they understand today’s
values. To be prepared for this
market the best advice I can give a buyer is to see at least 10 homes before
placing an offer on anything. Having
a full understanding of the market you are
in is step 1. This will have two
instant effects. One, you will
know a great deal when you see it.
Two, you’ll be less likely to low ball a great home which can lead to
significant negotiation issues.
An educated buyer is a
successful buyer!
Take advantage!!
Many
people try to time the market. In my
mind this is akin to timing the wind – though Tiger does claim he can do it,
it’s an impossible task. You may
get lucky once in a while, but the house always wins. The best way to take advantage in any market is with
knowledge. Research, Understand, Commit and Re-Act!!
And if you don’t believe me……. Just ask Warren Buffet……
