Thursday, April 19, 2012

Market on the move?



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……


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