Are you sitting on the fence?
Are you wanting to invest in Sacramento County real estate but think it wise to wait until we hit the "bottom"?
First of all, how will you know when we've hit the bottom? One might argue that we'll only recognize the bottom when we see it through our rearview mirror.
If you study the behaviors of the successful real estate investors you'll notice that they typically purchase during the decline, well before the "bottom". Why would they buy when further decline is clearly predicted? Who would invest knowing that a loss is on the horizon? Only the most wealthy real estate investors, that's who.
Consider this -- Sacramento County home prices have been falling for 2 years. Consumer confidence has taken a serious blow. Seasoned investors know that sellers in the unfortunate predicament of needing to sell in what's becoming known as a "phenomenal buyers' market" are becoming increasingly desperate. It's witnessed that this desperation motivates sellers to consider and accept offers below market. Successful investors are prepared to seize this opportunity.
What happens if the investors wait until the market hits its predicted plateau? When prices level off sellers will regain a feeling of stability. They will lose their perceived sense of urgency and the inclination to agree to unfavorable terms. The investor's opportunity to maximize his investment is lost.
Is fear driving you? A very wealthy investor once shared his philosophy -- "I watch what everyone else is doing and then I do the opposite". It's so true, isn't it? The successful investors invest when the majority of us are too scared. Everyone knows the old saying "Buy Low and Sell High". Very few act on it. When prices are inflated how many of us sell? How many of us run out and stock up for fear that it will soon be outside of our reach? When prices are low - we feel suspicious and fear purchasing something that might be proven worthless.
Consider this -- Real estate is the only investment that can never be worthless. It's true. Land is a limited resource, global population is growing, and housing is a basic human need.
It's true that there are many economic factors influencing the local real estate market that are completely out of our control: job creation/elimination, supply (i.e. new builder development), population growth/decline, politics, vacancy rates, absorption rates, monetary policy (i.e. rates and loan qualifications), and success/failure of local industry. However, the fear factor - well, we can beat them, or join them, it's up to you.
I challenge you to be a methodical and pragmatic investor not an emotional investor driven by fear.
Call Tom & Jana today to see if investing in real estate is right for you. 916-480-8363 or visit us on the web at www.FamilyHomeSellers.com
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