Avoid Trying to “Time” the Real Estate Market
Posted February 20, 2012on:
A lot of people think about buying real estate “at some point” but don’t really put a plan into place because they’re waiting for finances to settle, for a better deal to come along or a million-and-one other things. Realistically, ideal timing for a real estate purchase doesn’t exist. You just have to decide to buy, and then do it. If you’ve been holding off on buying because you’re trying to time your purchase to maximize your profit on the transaction – don’t. Trying to time the real estate market only leads to speculation and missed opportunity, and can cost you a great deal.
Look for Great Deals – Not Timing
Great deals on homes exist in all markets. They’re usually a result of someone needing to sell a home quickly; often due to relocating, the purchase of a new home, or a change in family situation. A great deal may be a fabulous home at a reasonable market rate, or a good home at a below-market rate.
When you shop for a home, look for a good deal and don’t worry about market timing. In a vigorous housing market, home prices are often higher for buying, and you may have trouble getting the home you want because of competition. Don’t wait for a vigorous market; buy when you’re ready to buy, and look for the great deals – ignore the state of the market.
Timing the Market Can Cost You Money
A real estate expert that is currently in the process of putting together seminars for first-time buyers was recently quoted as saying: “The people who lose money are usually the ones who try to time the market. By the time you realize the market is coming back, it has already come back.” Don’t worry about whether the market is in an upswing or a downswing; find a home you like or a deal you like, and buy it. You’ll lose more money if you wait for the right deal and end up waiting for years to buy.