When is the best time to sell (or buy)
Ouch! If we just knew exactly when…
In an escalating real estate market, the standard complaint (from a buyer’s point of view) is that there “just are no good deals anymore: sellers can get their price”.
In a depressed market, the standard complaint (from a seller’s point of view) is that “There are no qualified buyers anymore”; or “No one is buying nowadays because the economy is so bad.” “It’s too risky to buy, because you’ll end up holding the property forever”. “It’s too hard to call it, the economy is in a ‘flux’”.
Should you sell when the real estate market is low or on a roll?
As a rule… it’s just like the stock market: Buy low, sell high!
There are exceptions.
For example, if you have a pool or a great garden – should you choose to sell your house in the summertime to show it in the best light? Or wait for the real estate market, which is low at this time, picks up some steam?
In my opinion, if that pool and garden are so great, put up that for sale sign in the summertime.
The best time to buy
As a rule, you have to buy low and sell high. If you are buying a house for the first time (or are an investor), the best time to buy a house is when the market is depressed.
What are the signs of a depressed market? Unemployment is rising, interests rates are falling, and a lot of “for sale” signs are on front lawns. When the market is depressed, the real estate agents worry and the newspapers start telling stories that homeowners are losing money when they sell their houses.
A lot of “for sale” signs on front lawns mean that a lot of sellers are competing for the same buyers. Competition means that prices drop… It’s time to buy!
However, most of the people don’t buy! It’s crazy, but true! When it’s time to buy, people wait. Go figure!
Why? Because the economy might go into a recession… and all those reasons why the economy is depressed. In other words, they are afraid. So the buyers wait. And so I repeat it, when houses do not sell, when unemployment rises… It’s time to buy!
A stupid example:
Let’s go nuts here… Suppose Wal*mart makes a super sale and reduces all it’s prices. They put a sign on the lawn and… People, hurry in and buy everything in sight.
Is it the same in the real estate business?
When the real estate prices go down, people don’t buy!
I still wonder why…
When the real estate market is low, it’s time to buy. Especially if you are an investor or a first time buyer.