Critical Steps and Signs to Time The Bottom of the Real Estate Market
How about some bookmark love? ::
This week I compiled a comprehensive list of the sales statistics for the current real estate market in Coastal and Southern Orange County. The question I hear most often is, "How is the real estate market going right now?" Which can be most accurately answered like this, "The market is fine, if you're not the one suffering." Of course a statement like that needs to be qualified with a little background information...
While there are fewer homes currently in escrow, I must mention that of the huge number of homes for sale many are still second homes, or listed by sellers who are not at all under pressure to sell. Let's call these the "B Home Seller" because they have a plan B if the home doesn't sell.
Home Seller B:
Why are they for sale now? There are a variety of reasons, but the most common seems to be that they believe that their financial position, and home value are exempt from the need to reduce their price in spite of the downward pressure in the market. For more information, read "Guru says 1/3rd of home sellers are delusional." Delusional seems like much too strong of word and I think that "Unmotivated" is more accurate.
Home Seller A:
There is a category of home seller who is very different from the one I just mentioned above. These are the really motivated sellers. These people cannot get on with their lives until they sell their house. These people are ready to deal, and very often their agent has already convinced them to lower their price at least once. There is a good chance that their price is currently already as low as they can possibly go in their situation. These homes are easy to spot:
1) Most of the time the properties are vacant, but the don't necessarily have to be.
2) Their agent types in all caps on the MLS page "BRING ANY OFFER"
3) They are already priced for a good deal, (not necessarily the cheapest, but definitely the best bang for the buck).
4) The sellers are willing to do a rate buydown, or help with closing costs, and some other ingredient to get the deal done, and the agent mentions this in the MLS or upfront.
These home sellers are the A Home Seller, because they are on the market with their "A Game" and their primary motivation is to sell their house.
The second most asked question: "Is now a good time to buy?"
The answer is this:
It never hurts to search for homes, or go look inside the available listings.
If the home you like is being sold by a "B Seller" and you are buying for an investment, or trying to time the bottom of the market, now is not a good time to buy. Wait until May of 2008, and try to buy the same home like or one like it.
If the home that you like is being sold by an "A Seller" then it is fine to buy now, and try to negotiate the best deal that you can, because they will be willing to deal with you as if it is already the bottom of the market. These sellers need to sell, and their only piece of bad luck is all of the negative press about the real estate market. As the buyer, you can throw them a lifeline, and make a deal, just make sure that this is an "A Seller".
This week I compiled a comprehensive list of the sales statistics for the current real estate market in Coastal and Southern Orange County. The question I hear most often is, "How is the real estate market going right now?" Which can be most accurately answered like this, "The market is fine, if you're not the one suffering." Of course a statement like that needs to be qualified with a little background information...
While there are fewer homes currently in escrow, I must mention that of the huge number of homes for sale many are still second homes, or listed by sellers who are not at all under pressure to sell. Let's call these the "B Home Seller" because they have a plan B if the home doesn't sell.
Home Seller B:
Why are they for sale now? There are a variety of reasons, but the most common seems to be that they believe that their financial position, and home value are exempt from the need to reduce their price in spite of the downward pressure in the market. For more information, read "Guru says 1/3rd of home sellers are delusional." Delusional seems like much too strong of word and I think that "Unmotivated" is more accurate.
Home Seller A:
There is a category of home seller who is very different from the one I just mentioned above. These are the really motivated sellers. These people cannot get on with their lives until they sell their house. These people are ready to deal, and very often their agent has already convinced them to lower their price at least once. There is a good chance that their price is currently already as low as they can possibly go in their situation. These homes are easy to spot:
1) Most of the time the properties are vacant, but the don't necessarily have to be.
2) Their agent types in all caps on the MLS page "BRING ANY OFFER"
3) They are already priced for a good deal, (not necessarily the cheapest, but definitely the best bang for the buck).
4) The sellers are willing to do a rate buydown, or help with closing costs, and some other ingredient to get the deal done, and the agent mentions this in the MLS or upfront.
These home sellers are the A Home Seller, because they are on the market with their "A Game" and their primary motivation is to sell their house.
The second most asked question: "Is now a good time to buy?"
The answer is this:
It never hurts to search for homes, or go look inside the available listings.
If the home you like is being sold by a "B Seller" and you are buying for an investment, or trying to time the bottom of the market, now is not a good time to buy. Wait until May of 2008, and try to buy the same home like or one like it.
If the home that you like is being sold by an "A Seller" then it is fine to buy now, and try to negotiate the best deal that you can, because they will be willing to deal with you as if it is already the bottom of the market. These sellers need to sell, and their only piece of bad luck is all of the negative press about the real estate market. As the buyer, you can throw them a lifeline, and make a deal, just make sure that this is an "A Seller".
Tags:
Well I don’t know how much worse the market can get but I do expect that it will worsen before it recovers. I’m very interested in Laguna Niguel real estate and more specifically the condos in Laguna Niguel. I am waiting for the market to go low enough for there to be decent deals and I think that time is approaching.
I have yet to see all of the condos and homes out here so I am considering working with a Laguna Niguel Realtor. I need someone to show me everything that’s on the market so that I can make the best decision for my family. I’m surprised too that this area’s real estate hasn’t been stronger than the rest of the countries. The properties are all beautiful and the neighborhood is as safe as they come.
Posted by
Anonymous |
1:49 AM