There Will Always Be Something Bigger, Better and Hopefully Cheaper Around the Corner

If you wait long enough those PLASMA big screen TV’s will be cheap enough to buy, but once that happens some bigger and better TV will come out so why not wait.  A former colleague of mine told me a story about his dad waiting for the next best TV to come on the market to be cheap enough to buy, but every time that TV was cheap enough technology produced something better so he waited.  Decades later, he still doesn’t own a TV.

Do you see where I’m going with this? There will always be something bigger and better around the corner and you could wait for bigger and better, in hopes that someday bigger and better will be cheap enough to buy.

There are probably times I wouldn’t recommend buying a house if home prices are increasing by leaps and bounds in an artificial trend that doesn’t follow the normal trends we have seen for the past several decades.  But it always puzzles me to watch people try to time the market to reach the very bottom before buying a house and pass up homes that were perfect for them, in hopes that if they wait a few more months that same house or something similar will cost a lot less, or there will be more homes available to choose from.

Now if you’re a first time home-buyer and you aren’t buying a house, because you aren’t sure you’re job will be around next year, that’s one thing.  But if you sit and wait for a better home than the one you're considering that better home may not go on the market in the next few months.  And the one you were considering is now under contract with another buyer.  Just because we think there will be something better around the corner may or may not actually be available down the road.

And as for the market – well it might go down a bit, it might not.  It might go down a lot. It might go down a little, where you hardly notice the difference.  It's easier said than done to time the bottom.  Only a selected few ever win this game.  Most of us miss it.  The bottom that is.  Nothing goes up forever and nothing goes down forever.  Markets are cyclical.  A lot of people have a hard time moving forward.  It’s hard to leave the gate and move into something new.  Becoming a homeowner is exciting, but can be scary too.

It would be better to look at buying your first home by how much you can afford to pay for every month, comfortably.  So if one of you loses your job you're not in such a bind that the only option you have is to hand the keys back to bank and walk away.  Because yes your home you just bought may be worth less next year.  But any investment you get into takes time.  Rarely is any investment strategy a short term one.  You usually have to be in it for the long term to gain.

And it’s worth being realistic about it.  If all you can afford is a $175,000 home and homes are selling for $250,000 this might not be the right time to buy a home.  The best time to have bought a home in Humboldt County CA, was when homes were selling for $150,000.  I wish I could have afforded to buy a home then.  Unfortunately I wasn't in a good position to buy.  I could however afford a home when they were worth $280,000 4 years ago and my now husband and I did buy then.  I would have rather paid $150,000 but it wasn't the right time for me to be a homeowner when homes were less.  I don't regret the decision, because I've enjoyed being a homeowner for the past 4 years.

For those who can afford to buy a house today, you have to decide when you are ready to be a homeowner because yes there may be a bigger and better house around the corner and then again there may not.  Home ownership is an incredibly wonderful thing.  But it comes down to being comfortable and ready to become a homeowner.  Is this the right time for you?

Copyright 2009 Jessica Bigger.  All Rights Reserved. *There Will Always Be Something Bigger, Better and Hopefully Cheaper Around the Corner*

If you are thinking about buying in the California Coast area,  I'd be happy to sit down and chat with you about your situation.  Call Today!  Jessica Bigger 707-496-5770.