Why now is a great time to buy real estate
The real estate market experiences cycles of highs and lows. The typical cycle may take 5-7 years. Values begin to rise, sometimes quite rapidly, then they level off or decline, then they rise again. But they almost never decline to the level they were before the rise began.
Today’s market is what’s called a buyer’s market. It means simply that there are more sellers in the market than buyers. Buyers have the advantage.
People tend to buy at the wrong time. When the market is hot and prices are rising people are excited about the possibility of making money. They jump into the market and buy. This works out fine for a lot of people, except for those who buy at the top of the cycle. When prices begin to fall, those who bought at the top may find that it’s impossible to sell even at the same price which they purchased.
When the market declines some people are fearful of buying. But that’s exactly the right time to buy. Why? Because real estate always comes back!
Buy in bad times, sell in good times. That’s the way to real estate success.
Why is today’s buyer’s market a good time to buy? Here are some good reasons:
1. Prices are lower. In the $500,000 - $600,000 price range it’s not unusual to find that prices have dropped by $100,000 or more. In the $200,000 and below price range prices have also fallen. If you thought buying something for $200,000 was a good deal 2 years ago, then why isn’t it a good deal at $150,000 today? Which is a better time to buy, when prices are high or when prices are low?
2. Sellers are anxious or even desperate. They are more likely to consider low offers. They are more flexible in price and terms. Some haven’t had an offer in months. Your offer may be the only one they’ve had. Some sellers absolutely must sell. This is where you’ll find a bargain.
3. Zero cash deals are easier to find. Why is a zero cash deal better? It increases your cash on cash return and your return on investment. It involves less risk. It frees up your money which can be used to make other deals. It’s easier to find seller financing in a buyer’s market. The seller may finance your down payment.
4. Creative, low cash deals are easier to find. If you are looking to lease option a property or buy subject-to the mortgage when is easier, a seller’s market or a buyer’s market? When the seller is having difficulty selling and receiving no offers at all, your creative offer is more likely to get their attention. It’s easier to find seller’s who just need relief from their monthly payment.
5. It’s easier to find great properties that are sure to rise in value. During a hot seller’s market the best properties sell quickly. Some sell in hours. You may never even know they were for sale. In a buyer’s market for sale signs are everywhere. It’s easier to find a good property in a good location. These properties will rise in value faster than less desirable properties, when the market surges ahead.
6. Low-interest mortgage loans are easy to find. Lenders are looking for borrowers. Mortgage rates are historically low and it’s easy to get a loan.
7. Most of the negative news is behind us. We are seeing positive reports about the real estate market on the national level and now even on our local level. Prices won’t stay low forever. Buyer’s markets come and go. Now is a great time to buy.
by Dan Forbes
======================
Bradenton Real Estate
Today’s market is what’s called a buyer’s market. It means simply that there are more sellers in the market than buyers. Buyers have the advantage.
People tend to buy at the wrong time. When the market is hot and prices are rising people are excited about the possibility of making money. They jump into the market and buy. This works out fine for a lot of people, except for those who buy at the top of the cycle. When prices begin to fall, those who bought at the top may find that it’s impossible to sell even at the same price which they purchased.
When the market declines some people are fearful of buying. But that’s exactly the right time to buy. Why? Because real estate always comes back!
Buy in bad times, sell in good times. That’s the way to real estate success.
Why is today’s buyer’s market a good time to buy? Here are some good reasons:
1. Prices are lower. In the $500,000 - $600,000 price range it’s not unusual to find that prices have dropped by $100,000 or more. In the $200,000 and below price range prices have also fallen. If you thought buying something for $200,000 was a good deal 2 years ago, then why isn’t it a good deal at $150,000 today? Which is a better time to buy, when prices are high or when prices are low?
2. Sellers are anxious or even desperate. They are more likely to consider low offers. They are more flexible in price and terms. Some haven’t had an offer in months. Your offer may be the only one they’ve had. Some sellers absolutely must sell. This is where you’ll find a bargain.
3. Zero cash deals are easier to find. Why is a zero cash deal better? It increases your cash on cash return and your return on investment. It involves less risk. It frees up your money which can be used to make other deals. It’s easier to find seller financing in a buyer’s market. The seller may finance your down payment.
4. Creative, low cash deals are easier to find. If you are looking to lease option a property or buy subject-to the mortgage when is easier, a seller’s market or a buyer’s market? When the seller is having difficulty selling and receiving no offers at all, your creative offer is more likely to get their attention. It’s easier to find seller’s who just need relief from their monthly payment.
5. It’s easier to find great properties that are sure to rise in value. During a hot seller’s market the best properties sell quickly. Some sell in hours. You may never even know they were for sale. In a buyer’s market for sale signs are everywhere. It’s easier to find a good property in a good location. These properties will rise in value faster than less desirable properties, when the market surges ahead.
6. Low-interest mortgage loans are easy to find. Lenders are looking for borrowers. Mortgage rates are historically low and it’s easy to get a loan.
7. Most of the negative news is behind us. We are seeing positive reports about the real estate market on the national level and now even on our local level. Prices won’t stay low forever. Buyer’s markets come and go. Now is a great time to buy.
by Dan Forbes
======================
Bradenton Real Estate
Labels: Market Conditions
posted by Dan Forbes at
8:54 AM
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