Real Estate Home Buyers - Should you buy now or wait?
There are lots of buyers “sitting on the fence” observing the craziness that seems to have taken over the real estate market. For the last several years, the market has been heavily favoring sellers. With any state of imbalance, there always comes a period of adjustment…the pendulum swings a bit too far in the opposite direction. Consequently, the current market is heavily favoring buyers.
What do you suspect that means in the long-run? You probably guessed that the pendulum will have to swing back in the other direction eventually. Professionals (and most homeowners for that matter) prefer a stable market where there are a reasonable number of homes (inventory) on the market for the number of active buyers.
The question on the minds of many potential buyers is “Should I buy now or wait for prices to fall?”
There’s no easy answer to that question and while I’m going to share a few thoughts with you, I encourage you to send me an e-mail or call to discuss the Nashville-Middle Tennessee real estate market and the services I provide. So, here goes!
If you’re a buyer, you need to think like a seller. Sellers who are not seriously motivated to sell will make minor price adjustments and eventually take the home off the market to wait out the storm. Motivated sellers will adjust the price more dramatically until they can’t go any further without it becoming a financial hardship.
With many homes mortgaged for close to their full value over the last few years, sellers have less room for price negotiation unless they’re willing to come up with $20,000 or more…most likely not going to happen. When sellers finally come to this conclusion, they take the home off the market and continue to live there or rent it out.
Nice homes in nice neighborhoods rent for close to what your mortgage payment would be AND you don’t get the tax benefits. If you rent a home that isn’t something you’d choose for the long-term, you also get to face moving at least twice. Remember, moving wasn’t fun the first time! So, renting is not necessarily a wise strategy.
Properties in desirable areas still get snapped up quickly. I was on the phone with a buyer today. He found a home he liked (after an extensive search) but thought that there was no rush to make an offer on it. The home sold before he made his offer and he’s really kicking himself. When you need something unique and you’re fortunate enough to find it, don’t delay!
The bottom line…most sellers are only willing to reduce the price so far before they go to “Plan B”. Everyone knows that markets go through cycles and “this too shall pass”. So, if you’re looking for something special and are fortunate enough to find it, there’s no reason to wait. Sellers are pretty realistic at this point and, if they’re motivated, have priced their homes to sell. If they’re not motivated, they won’t lower the price much anyway so waiting won’t make much of a difference in what you ultimately pay.
If you’d like to talk further about how you can put my Nashville-Middle Tennessee Real Estate Services to work for you, visit www.FivePointsProperties.com. To search the MLS listings for Nashville-Middle Tennessee real estate, click on the large map on the home page.
What do you suspect that means in the long-run? You probably guessed that the pendulum will have to swing back in the other direction eventually. Professionals (and most homeowners for that matter) prefer a stable market where there are a reasonable number of homes (inventory) on the market for the number of active buyers.
The question on the minds of many potential buyers is “Should I buy now or wait for prices to fall?”
There’s no easy answer to that question and while I’m going to share a few thoughts with you, I encourage you to send me an e-mail or call to discuss the Nashville-Middle Tennessee real estate market and the services I provide. So, here goes!
If you’re a buyer, you need to think like a seller. Sellers who are not seriously motivated to sell will make minor price adjustments and eventually take the home off the market to wait out the storm. Motivated sellers will adjust the price more dramatically until they can’t go any further without it becoming a financial hardship.
With many homes mortgaged for close to their full value over the last few years, sellers have less room for price negotiation unless they’re willing to come up with $20,000 or more…most likely not going to happen. When sellers finally come to this conclusion, they take the home off the market and continue to live there or rent it out.
Nice homes in nice neighborhoods rent for close to what your mortgage payment would be AND you don’t get the tax benefits. If you rent a home that isn’t something you’d choose for the long-term, you also get to face moving at least twice. Remember, moving wasn’t fun the first time! So, renting is not necessarily a wise strategy.
Properties in desirable areas still get snapped up quickly. I was on the phone with a buyer today. He found a home he liked (after an extensive search) but thought that there was no rush to make an offer on it. The home sold before he made his offer and he’s really kicking himself. When you need something unique and you’re fortunate enough to find it, don’t delay!
The bottom line…most sellers are only willing to reduce the price so far before they go to “Plan B”. Everyone knows that markets go through cycles and “this too shall pass”. So, if you’re looking for something special and are fortunate enough to find it, there’s no reason to wait. Sellers are pretty realistic at this point and, if they’re motivated, have priced their homes to sell. If they’re not motivated, they won’t lower the price much anyway so waiting won’t make much of a difference in what you ultimately pay.
If you’d like to talk further about how you can put my Nashville-Middle Tennessee Real Estate Services to work for you, visit www.FivePointsProperties.com. To search the MLS listings for Nashville-Middle Tennessee real estate, click on the large map on the home page.
posted by Dr. Gala at 5:50 PM
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