Special offer

Waiting for your chance to pay too much for a new home?

By
Industry Observer

Shopping for a new home is a lot like Christmas shopping.  The best time to shop and buy is before the rush, while inventory is adequate and there is not too much competition for the most desirable stuff.  Wait until a week before Christmas to start looking for the hottest toy of the year, and you'll probably end up on eBay bidding a lot more than list price, and you still might not get what you want.

We are way past the part of the season when we complain that the retailers are rushing us.  The complaints about Christmas promotions coming too early are mostly forgotten.  It's just about panic mode.  The good stuff is gone and the sales we were waiting for have not materialized.   A month or so ago was a great time to shop, but we waited.  Now, the most sought after gift items are hard to find and overpriced.  There is plenty of less desirable stuff, but it's no bargain either.

This is your early call to avoid the big rush in home hunting.  It's not March yet, and you still have a chance to shop early.  If you want to settle for something that's not exactly what you want, or if you want to pay too much for your dream home, just wait.  Wait like you did to start your Christmas shopping.  Wait until spring, and then wait in line to submit your highest and best offer on a home that everyone is lining up to buy.

Yes, like the retail stores this week, there is and will be a lot of stuff for sale, even in March and April.  Most of it is not going to be the best property or the biggest bargain.  It'll be the stuff that has been picked over with the best and best-priced homes no longer available.

If you actually want to find the best Elko-New Market property at the best price, now is the time to get serious and begin house hunting.  Call me to reserve a time for a no obligation (honest) home buying orientation and strategy session.  It takes about an hour, and now is the time to take some action.   It will save you a bundle!

It's still possible to get a loan on a home with nothing down in many Scott County locations, but funding for this program is not unlimited.  There may be some spring home shoppers who are unable to get no money down financing.  Why wait until it's gone just so you can tiptoe through the tulips instead of sloshng through the snow to find a home?

 

Posted by

 Mike Carlier  Lakeville, MN

 

612-916-3033

 

TODD PICCONI INLANDEMPIRE & SOUTH ORANGE COUNTY, CA
TODD PICCONI REAL ESTATE - Dana Point, CA
Personal Engagement,Precision, and Professionalism

Mike,

Some Great Points in here...Thank You for posting and here's to getting it before it's gone up in price!

Dec 18, 2010 06:21 AM
Sonja Patterson
Keller Williams - BV - College Station, TX
Texas Monthly 5-Star Realtor Recipient for the Hou

Mike, this is an excellent analogy!  Yes, many will "window shop" homes on the internet over the holidays...then wait until the spring to start "serious shopping"...and the deals may be gone...

Dec 18, 2010 06:33 AM
Mike Carlier
Lakeville, MN
More opinions than you want to hear about.

Thanks for the comments.  We all know that, in any market, the best property at the best price always goes quickly.  When there are more folks on the hunt, it's even harder to be the lucky one who gets the best deal.  

Dec 18, 2010 07:39 AM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Mike:  I'm standing up ... I'm applauding ... I'm cheering wildly!  Bravo!  Unfortunately, we've all seen this scenario.  Someone waiting a bit too long and missing their golden opportunity.  It happens with buying a home and it most certainly happens when deciding on locking in a loan.  People gamble and lose.  As it was stated above, not only prices of homes and choice of homes are at stake.  Interest rates have gone up remarkably ... and that all translates into dollars and cents, affordability, and loan approvals being harder to obtain.  Hopefully many read this and TAKE ACTION!  At minimum, they need to get started on the process of educating themselves, should they be thinking that they will be in the market for a home soon.

Again ... great post!

Gene

Dec 18, 2010 07:44 AM
Peggy Wester
Realty Executives Integrity - Grafton, WI
Real Estate Agent Ozaukee & Washington County

I agree with everyone here -- what a great analogy! I, too, am reblogging. One of the best posts I've read recently.

Dec 18, 2010 07:45 AM
Wendy Rich-Soto, Realtor/Broker Associate
Keller Williams Realty, LA Harbor - San Pedro, CA
Getting you to your next with a zero failure rate!

Aweome post!  Thanks a bunch!  Happy Holidays!

Dec 18, 2010 08:35 AM
Monica Foster
Monica Foster Team of eXp Realty - League City, TX
Broker, CRS, ABR, SRS, CHMS, CNE, CNHS
Great post! There are so many buyers who simply won't commit (early on) even though they find the "perfect" home because they "know" something better will come along ... And as you pointed out, it will, but they'll be in a bidding war with others if they wish to get it, then find themselves frustrated after being outbid.
Dec 18, 2010 08:38 AM
David O'Doherty
Clayton, NC
Clayton NC Homes, Raleigh, NC

Mike don't say that we are buying a new laptop this week. In regards to housing, this is so true, just the rates going up is going to cost people a ton of money.

Dec 18, 2010 08:42 AM
Bryan Robertson
Los Altos, CA

Our inventory and new listings have been really weak in the last 2 months.  My buyers have gotten frustrated because they wanted to buy during the slow season to get a good deal but it hasn't coem together.  I'm hoping we see a few good listings in January so they can start at least writing offers.

Dec 18, 2010 08:44 AM
Gerard Ladalardo
Black Ops Outfitters - Aliso Viejo, CA

I completely agree with your post. Seems like these days who really knows when the best time is to purchase a home. Looks like prices may fall again, but rates are up 1% higher than 3 weeks ago! Who knows where rates are going to end up either. One thing is for sure- if you did purchase a home recently and have a 30 yr fixed loan below 5% (or maybe 4%) you should be smiling right now. I know I would be smiling!

Dec 18, 2010 10:32 AM
Brad Rachielles
CENTURY 21 Peak, Ca BRE# 01489453 - Upland, CA
REALTOR, CDPE, Upland, CA

We only know when we hit bottom when prices are heading up. WELL, in my little corner of SoCal, the median prices ARE trending up, interest rates are above lows... acquisition prices are increasing. Re-blogging this post for my local readers.

Dec 18, 2010 01:15 PM
Steve Davis
Davis Coastal Properties - Carlsbad, CA
Carlsbad CA

Higher rates mean lower prices - as they impact the monthly payment a buyer can pay. With the banks someday releasing their shadow inventory - prices appear to be going lower next year. But - if any of us were even a little accurate in our projections - we would be rich! The bottom line - if you need to buy - do it now.

Dec 18, 2010 01:26 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

The thing about buyers this time of year, is that they seem to be more serious and have less competition.

Dec 18, 2010 03:07 PM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Spinrg house hunting is definitely akin to Christmas shopping the week before Christmas.  Next time I buy, it'll be in the fall/winter.

Dec 19, 2010 03:52 AM
Sophia Lin
Intero Real Estate Services - Sunnyvale, CA
Sunnyvale CA Real Estate Specialist

What a great analogy.  This is an excellent way to explain the buying market to the Buyer....it's so true!

Dec 19, 2010 12:45 PM
Cheryl Ritchie
RE/MAX Leading Edge www.GoldenResults.com - Huntingtown, MD
Southern Maryland 301-980-7566

Oh, I love the Golden and the post, too. I say this a lot. Why wait until Spring when you compete and the rates go up? It relates to the same retail concepts. Good points!

Dec 19, 2010 11:38 PM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Sounds like the housing market in Apple Valley MN must have stabilized - which is a very good thing.  Here in the Phoenix area market we're still digging our way through Short Sales and REOs, and will be for some time to come.

Dec 20, 2010 01:26 AM
Rosemary Brooks
BMC Real Estate - 209-910-3706 - Stockton, CA
The Mother & Daughter Realty Team

While I don't think any one is really waiting for the prices to go up... the prices are going up, interest rates too -- so the big question is what are they waiting for!!

Dec 26, 2010 08:43 AM
Ellie McIntire
Ellicott City Clarksville Howard County Maryland Real Estate - Ellicott City, MD
Luxury service in Central Maryland

The buyers that wait for Spring will not enjoy the crazy interest rates that buyers today are getting. That in itself is a good reason to get out and buy.

Dec 26, 2010 08:56 AM
Mike Carlier
Lakeville, MN
More opinions than you want to hear about.

Gene, It seems that the vast majority of Americans believe that they must buy high and sell low, and they are willing to be patient for the opportunity.  Thanks for commenting.

Peggy, Thanks for re-blogging.  We can at least tell late buyers that they were warned :-)

Wendy, Monica, thanks for the posts.  Lets try to help as many early shoppers as possible.

David, I hope you bought an Apple.  They don't really go on sale, and they last forever.

Bryan, low inventory is not the worst thing that can happen to a market. Count your blessings and get your buyers to increase their offers while there's something left to buy.  Best of luck to you.

Gerald, exactly, interest rate changes usually affect payments more dramatically than price changes.

Brad, I appreciate the re-blog.  First time buyers who shop early will be rewarded in any market.

Steve, Carol, Christine, Chris Ann, Sophia, thanks for the comments.  It's hard to help buyers overcome their hesitation when they are hearing a lot of bad things about the real estate market.  They need to be helped to gain the confidence to understand that most of the bad stuff is a reason to buy now.

Cheryl, the Golden is Lindy, our first who has been gone quite a while.  she always took the best pics.  Lost her daughter, Blaze in July 2009 at age 16+.  Blaze was an agility dog, getting her final title when she was 15.  ...and then there's real estate.  We can all recite the four words to buyers, "I told you so."

Tony and Suzanne, are you still seeing substantial price drops month to month?  It takes around 10% of price drop to compensate for 1% of interest.

Rosemary, I think they're waiting for their landlord to go to Helsinki on his vacation.  Rents are going up too.

Dec 26, 2010 09:22 AM