Good Market or Bad Market?

By
Real Estate Agent with Florida Future Realty, Inc. BK3071625

To be quite frank with you I am sick of discussing it. I feel like a record stuck on the same groove. Day in & day out I answer the question over & over again.

True, I work with mostly investors so this information is in fact, important to them to know. Not crucial though. Let me explain. Investors buy real estate (or stocks or bonds, etc) all of the time, in good & bad markets. They just make sure they are getting the best 'deal' at the present time.

In real estate that means that it matches your criteria. What is YOUR criteria for buying? Are you looking for a second home? Cash flow? A long term investment? Short term? Retirement home? Can you afford to hold the property or are you expecting to have it sold or rented right away?

If you do not have your criteria determined, you better figure it out before you start buying. You need a business plan. Real Estate investing is a business, you wouldn't start a new company without a plan would you? I sure hope not.

To simply call an agent & ask if now is a good time to buy is absurd. We need more information.

Without knowing your investment goals I can't help you. Sure the past couple of  years ('04-'05 in particular) it didn't matter what you bought, when or where because it was all going up at astronomical rates. But in my mind thats not investing. That's speculating & most money made during that time in real estate was more by accident.

Now, if you are typical home owner looking to sell, when should you sell? When you need to. It's that simple. People will sell houses in any market, any season, it doesn't matter. The current market, buyer or seller makes no difference. For instance last year those in more entry level homes sold & had gains of $50-100K in equity in only a year or two, they were thrilled. But what could they buy? Everythng else went up to? Many had to leave the area. They couldn't afford the payment to even buy their OWN house back.

This year, I've sold homes for clients who were disappointed about not clearing enough profit. But you know what? They bought another place for way less than they would have had to pay last year. So it all levels out in the end.

If you are looking to buy your first home, when should you do it? Answer: As soon as you can afford it. Don't worry about whether the market is good or bad. What is that anyway? You need a house, the earlier you get in the more equity you'll generate in the long run. Even if you purchased at the height of last years spike, you didin't lose anything. Unless you sold this year. Overall, if you hold the house you'll have equity when you go to sell.

 

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Location:
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Tags:
market conditions
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Rainmaker
1,142,050
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Susan, Great post. I agree 100%. The best time to buy or sell a house is now. I like the way you differentiate between investors and speculators. The speculators are the ones who depend on depreciation to make a buck the investors are smart enough to make it going into the deal. Must investors I work with rarely sell. 
Nov 25, 2006 10:50 AM #1
Rainmaker
1,765,876
John Novak
Keller Williams Realty The Marketplace - Las Vegas, NV
Henderson, Las Vegas and Summerlin Real Estate
In the long run, a lot of the ups and downs will even out and a long-term upward trend will emerge. Our team doesn't look at the market as good or bad right now, but 'challenging' and it's our belief that this is when the professional agents prove themselves. People are still buying and selling homes, and we're glad to help!
Nov 25, 2006 03:57 PM #2
Rainmaker
298,297
Ray Saenz
Exit Realty Laredo - Laredo, TX
Homes for Sale in Laredo, TX - Texas, Realtor

Susan,

I say,  time to buy :)

Ray Saenz

Nov 25, 2006 04:10 PM #3
Rainmaker
364,255
Colleen Kulikowski
The Griffin Team @ Keller Williams Realty - Buffalo, NY
Creative Real Estate Solutions...
Susan - well said!  Keep writing such great stuff!
Nov 26, 2006 11:32 AM #4
Rainer
4,461
Jeffrey J. Rabedeau
Treeline Realty - Cape Coral, FL

Susan,

Great post.  Thanks for sharing.  I agree with you 100%. 

Dec 18, 2006 08:56 AM #5
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Rainmaker
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Susan Milner

Cape Coral Real Estate Broker, FloridaFutureAgents
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