Market Thoughts & Quotes
I just came across an excellent article on the housing market which was posted in the Boston Globe titled “Is it the right time to buy, or will prices go lower?” By Kate M. Jackson Globe Correspondent / April 13, 2008
Here are a couple great quotes from the article:
“Whatever side you’re on, the key is to know whether or not you’re the ‘right’ buyer for this particular market,” said Greg McBride, a senior financial analyst for Bankrate. “I liken buying a home today to getting married: you really have to be in it for the long haul and ready for the commitment. If you’re planning on buying right now, you should also be planning on staying awhile.”
“I’m not a prophet, I’m a realtor,” he said. “I tell them it really depends on why they’re looking to buy a house in the first place. Some people have to move right now. Others don’t. While I anticipate prices will come down a bit more, I tell my clients if they see the right place right now, and have the down payment, buy it. It’s not going to change your mortgage payment all that much in the long term. And if you’re planning on staying there more than five years, you’re probably not going to lose money.”
I think this article is dead on in regards to making decisions in this marketplace. If you do find a property that you feel is the one and you can see yourself there for the long term (5+years) make an offer! For one, the sellers are more understanding that people are going to throw out “low ball offers” and are not as likely to be offended as they have been in the past. Now they are much more likely to counter offer and realistically get the deal done.
In recent months I have experienced this first hand. I had a client throw a low number out to a seller who was “unmotivated and ready to stick it out” and that seller countered much lower than we ever thought they would!
Bottom line, you never know unless you try. Worst case they say no and you move on to the next property.
Here’s my disclaimer:
Not all properties are unrealistically priced and everyone’s situation is different. Some properties you may be able to purchase and list price to sale price might be very close, this is not a bad thing at all. It is also why we have appraisals on properties to help ensure appropriate value.
