Slow market a great opportunity for those with the right mindset

By
Home Stager with Staging Diva / Six Elements Inc.

slow marke great time to buy a houseWho was it that said, when others are excited that's the time to sell and when everyone else is scared, that's the time to buy? Warren Buffet? It might have been said about the stock market, but it totally applies to making money in real estate in my opinion. I'm not a real estate agent, but I have bought 8 homes in both slow and hot real estate markets.

If I hadn't bought my dream home on Mother's Day two years ago, I'd be selling and trading up right now. This is a great market to buy in if you're ready to trade up to a better property or you're a first time buyer. If I was a real estate agent, I'd really be pushing this idea hard. Let's do the math:

If you currently own a $300,000 home, when the market goes up 10%, you'll be ahead $30,000.

If you currently own a $500,000 home, when the market goes up 10%, you'll be ahead $50,000.

In other words, if you're sitting in a $300,000 house right now, and you can afford the increased mortgage payments of owning a $500,000 home (which may not be hard at current historically low interest rates), when the market does rebound, you'd be ahead $20,000 if the market only goes up 10% (and it will likely go up way more than that). That $20,000 would offset the costs of moving and you would be living in a way nicer house.

This assumes you've been living within your means up until now of course. If you haven't, consider how much less power you have because of it and resolve to dig yourself out of debt. But that's a subject for a whole other post!

For first time buyers, housing prices are finally within the realm of affordable and interest rates are ridiculously low, so it's no surprise that first time buyers represent over 40% of the market right now. As a home stager, that's great news, because this is the crowd that would be most influenced by home staging.

Looking at attractively decorated and well-maintained properties is way less scary for a first time buyer.

I'm reminded of this every time I go to the gym and my trainer tells me about all the house showings he's been on. Like 90% of people, he can't see past cracked walls, ugly carpet, burned out light bulbs, overcrowded furniture and clutter. To him a house is exactly what it looks like, no imagination required. One of these days he's going to walk into a house that's staged for a young guy looking to put down some roots.

As soon as that happens, he'll stop throwing over $1000/month down the drain in rent and sign on the dotted line.

With over 5.2 million houses projected to sell in the US in 2009, there's a huge need for quality home staging. If you're a home stager, I recommend looking at how you can use the current market conditions to your advantage rather than letting them discourage you. For more information on how the current economy and slow housing market will affect the home staging industry, check out this free report.

Debra Gould, The Staging Diva®
President, Six Elements Inc. Home Staging

A compulsive home buyer, Debra Gould took her passions for real estate and decorating and turned it into an internationally recognized home staging company featured on CNNMoney, MoneySense, HGTV, The Wall Street Journal and more. Since 2005, she's been teaching others how to become successful home stagers in the Staging Diva Training Program. There are currently over 1000 Staging Diva Graduates on 5 continents. Debra encourages anyone concerned about starting or growing a home staging business in today’s economy to download her free special report: “Ask Staging Diva: Can I grow a home staging business in a depressed economy?”

 

 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Sharon Sapp 04/28/2009 08:26 AM
  2. t t 05/10/2009 02:05 PM
Topic:
Real Estate Sales and Marketing
Groups:
Realtors®
The Art Of Marketing You
Home Staging
How To Grow Your Real Estate Business
Home Staging 101
Tags:
slow market
slow real estate market
staging diva
real estate marketing
debra gould
sales opportunity

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Rainmaker
687,386
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

It is a great market to buy-I can't see why anyone would want to pay someone else when they can pay themselves and make money on the investment.

Apr 28, 2009 07:16 AM #1
Ambassador
1,485,851
Jim Crawford
Crye-Leike REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR

You're right.  This is an incredible time to buy.

Apr 28, 2009 07:21 AM #2
Rainer
28,523
Suma Kakani
Northern IL Realtor - Keller Williams Success Realty - Prairie View, IL

It's absolutely perfect time for buyers whether first-time or move-up buyers. I'm more concentrating on these right now and am seeing success.

Apr 28, 2009 07:26 AM #3
Rainmaker
27,033
Terry Adams
Condolux Real Estate & Vacation Rentals - Myrtle Beach, SC

Good call and great way to put it! Now, if only we can pass that along to buyers. :)  You have to admit that in this economy, it is a bit tougher to make the actual sale. Whether they are getting a good deal or not, they are still a bit worried about what "could" happen.

Either way, you are right, especially about the first time buyers and home staging.

Apr 28, 2009 07:28 AM #4
Anonymous
Anonymous

Enjoyed your post!

Apr 28, 2009 08:12 AM #5
Rainer
14,164
Wanda Phillips
Success Investment Realty - Altamonte Springs, FL

Buy low - sell high.  Anyone buying in this market is sure to get a great deal. 

Apr 28, 2009 08:25 AM #6
Rainmaker
330,307
Rosalinda Morgan
Brookville, NY
"The Rose Lady"

It is absolutely the perfect time to buy assuming you can afford the mortgage payment.  

Apr 28, 2009 08:35 AM #7
Rainmaker
532,451
Bob Jakowinicz
National Realty Centers Livonia--Bob Jakowinicz - Livonia, MI
Michigan Real Estate Agent-- MI RE Adventures

The only way we will know for sure when we are at the bottom is once the market starts going back up.  No one can time it perfectly 

Apr 28, 2009 08:41 AM #8
Rainer
21,674
Miranda Moser
Century 21 Bamber Realty - Calgary, AB
Calgary Real Estate Agent

I have been dealing with a lot of buyers lately that are getting some fantastic deals!!! It is a great time to buy with the low interest rates and the motivated sellers.

Apr 28, 2009 08:48 AM #9
Rainmaker
401,486
Debra Gould
Staging Diva / Six Elements Inc. - Toronto, ON
The Staging Diva

I agree, impossible to time the bottom of the market, you'll only see it in your rear view mirror, whether you're looking at real estate, stocks or currency trading.

I do all three and drive myself crazy when I try to time it all too perfectly!

Apr 29, 2009 04:37 AM #10
Rainer
5,551
Katherine James
Set Sale and Go Home Staging - Oakville, ON

This is a great article. I am going to pass it on to my husband realtor. I know he is aware of this, but you worded it very well.

Apr 29, 2009 06:53 AM #11
Rainer
85,902
Jo Adams
Jo Adams Properties Investment Property Specialist & Real Estate Services, LLC - Mountain Home, AR
Investment Property Specialist

First time home buyers should take advantage of the $8000 tax credit NOW, before it's gone!  That, coupled with low interest and the abundance of foreclosed properties, makes buying a home now a no-brainer!

Aug 08, 2009 02:30 PM #12
Rainer
25,274
Lina OL
Deluxe Home Staging & Design - Northbrook, IL

                                 Great post Debra!  Hopefully they extend the $8000 tax credit to pull the housing market through the tough season of fall/winter!!Profile Picture

Oct 05, 2009 03:09 PM #13
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Rainmaker
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Debra Gould

The Staging Diva
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