Word
is spreading, the market is hot hot hot!
While this is exciting info, and hopefully gets our economy back on
track, we must also be wary of the effects this foreseeable bubble can and may
cause. It hasn’t been long since
the last burst, but we as American’s are soon to forget and unfortunately often
let history repeat itself. Whether
buying or selling in this market, there are many factors to be aware of in
order to protect yourself properly.
Sellers - Don’t Aim
to high – you may miss your target
An
immediate reaction in a hot sellers market for many is to expect an exorbitant
purchase price. I often refer to
the stock market while talking Real Estate pricing based on market conditions,
and there really isn’t a better analogy.
When the market is hot; sellers who “play” the market often put
themselves in more jeopardy then a seller who “listens” to the market. All of us, each and every homeowner,
feels there home is special and in turn, worth more. By pricing too high however you can quickly and easily price
yourself out of the market, putting yourself at risk for missing the high tide
of the ebb and flow of our market.
You’ve heard the term “strike when the iron’s hot”, by waiting for it to
get hotter you may end up burning yourself in the long run. Timing of markets is difficulty, if not
impossible. Listen to and trust
your agent when it comes to fair market value and price accordingly.
Buyers - This isn’t
golf – don’t try to go low
Buyers
in this market are often frustrated and confused; with countless denied offers
and/or lost properties many feel they are never going to find a home. What many don’t realize however is that
they may be strategizing their offers on a buyers market. Often low balling homes and then
finding themselves frustrated at themselves or their agent based on the
inability to close. The best
strategy I can give a buyer in a sellers market is to be realistic and at times
overly aggressive. With lower
inventory comes multiple offers.
If we plan on obtaining our desired home we must realize the conditions
of the market we are in and act accordingly. Offers must be appealing to sellers as they often have many
to review. This is not the time to
lowball, it’s the time to react.
When you find the home you desire, have your agent run the comps in the
area, factor what the market is doing and offer a fair and reasonable price for
the market we are in. Do this with
an educated mind and/or agent, and you will come out on top.
Rising
prices in any market bring both angst and exuberance; you want to make sure you
are on the latter side of that fence. By educating yourself and working with a
professional who understands your needs as well as market conditions will ensure
that you are the exuberant buyer or seller, rather then the person with
angst. Due diligence, patience and
guidance will get you to the finish line with a smile. Patience is a virtue and persistence
pays! Keep this in mind at all
times and you will be sure to come out on top.
