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"I'm Going to Wait for the Market to Settle Down!”

By
Real Estate Broker/Owner with Home Point Real Estate DRE # 01492725

I'm Going to Wait for the Market to Settle Down!”

Yes that is what a client e-mailed me the other day when I told him what we would have to do to get him an Investment Property in this market.

Well there was only one thing I could say and it had to be said very bluntly, “No, you are waiting for the market to settle up!” Because when this market is not as crazy it will be because prices and interest rates have gone up and cooled it off.

The market is crazy right now because people believe that the real estate recovery is starting. Now I am not saying all the foreclosures are done with and there is not a rocky road ahead; but the banks seem to finally understand that they need to work the Short Sales to save money. Obstacles to foreclosures are coming down. Interest rates are about as low as they can get.

The monster inflation is right around the corner and charging fast.

I have some strong opinions on this coming election. But no matter who wins real estate is a good place to have your money.

Find out how to shelter your money (including Self Directed IRS) in Investment Properties with our Free Book of Real Estate Investing.

Don't wait for the market to Settle Up!

Comments (65)

Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Gene - It sounds to me like you're giving good, sound advice to your clients.

Apr 30, 2012 10:26 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

This is not a great market for me.  I think less than 5% of my offers end up in contract.  And they are decent offers many over market and very few under asking.

Apr 30, 2012 10:26 AM
The Derrick Team - Indy Metro Realtors
Carpenter Realtors - Avon, IN
Your Pet Friendly Realtors

I like that term 'settle up'. Truth is we never know for sure and waiting can cost on other fronts than just purchase price.

Apr 30, 2012 11:24 PM
Bill Fields
Bill Fields Learning Systems - Treasure Island, FL

Don't wait for the market to settle up, love it!

Apr 30, 2012 11:33 PM
Karen Crowson
Coldwell Banker Residential Brokerage - Rancho Bernardo, CA
Your Agent for Change
I can't tell you how many people have told me they're going to wait till the latter part of the year, for. Arious reasons. 6 months could unveil a completely different market.
Apr 30, 2012 11:44 PM
Teri Pacitto
Compass - Westlake Village, CA
Real Estate, Your Style...Your Home...My Specialty

Supply vs Demand.   That is the bottom line and definately what I am seeing in my market place.  Buyers that are working with "experienced real estate professionials" who know the signs of opportunities will benefit from this type of market.  Those who are waiting for the bell to ring when the bottom has hit...well, we all know that is unlikely to happen.  It's a great time to buy real estate - Today!  In six months...we will see, it might be.

 

May 01, 2012 12:08 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

It is basic economics - do your buying before the prices go up.  There is no more reason to wait if you can afford it.

May 01, 2012 12:13 AM
Linda Urbick
RealtyOne Group - San Ramon, CA
Selling San Ramon Valley - 925-786-5132

Gene - it's still the broad reporting by the media that has some people believing that in the latter part of this year we will see another drop. Perhaps - but it is niche specific. Waiting is not the best investment advice if one has the money to purchase now as prices are going up and even if they don't go up by a significant percentage, it is becoming clear that in a Sellers market (which we are in right now) there is very little room for negotiation - its full price or better.

 

May 01, 2012 01:44 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Linda,

What scares me is how fast the prices are starting to go up.  I had hoped more people would be able to become first time buyers in this market.

May 01, 2012 01:53 AM
John DL Arendsen
CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments - Leucadia, CA
Crest Backyard Homes "ADU" dealer & RE Developer

I agree RE is a good place to invest right now. But then if you got in at the right time Apple isn't a bad choice either.

May 01, 2012 02:20 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Investors are buying up a bunch in my area. Foreclosures have notices in the MLS that owner occupants have first dibs for the first 2 weeks.

May 01, 2012 03:15 AM
Monica Hill
RE/Max Associates - Wilmington, DE
the REALTOR to help you discover Delaware

I like that line... You are waiting for the market to settle up. 

Good post!

Clients of mine were talking the other day and one said to the other, "I'm waiting for the prices to drop." The other replied, "They already did. Were you asleep?"

 

May 01, 2012 03:51 AM
Beatrice M. Stambulski
COMPASS - Sherman Oaks, CA
Sherman Oaks Real Estate

It's denfinetly not waiting in my area, since January. I'm writing offers everyday for multiple Buyers, very few get through. Just lost 2 this morning: one in a multiple of 23 ( my Buyer all cash, $30 k over asking), the other in multiple of 80 ( yes EIGHTY) Both were priced correctly for condition and location. Inventory is extremely low.

May 01, 2012 05:28 AM
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

Still another big wave of foreclosures on the horizon.  So many of them were stalled out by the robo-signing scandal.  But now that an agreement with the attorney generals was reached expect a bunch more to slowly come on the market. That will just drag things out further.

May 01, 2012 05:46 AM
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Gene, great point!  I am thinking about writing about all the buyers in the last 1-2 years who said they thought the market was going to drop another 20-30%!

May 01, 2012 07:54 PM
Brad Baylor
ERA Coup Agency - Milton, PA

Gene - My favorite line, whenever I hear a client say they should wait to buy or sell, for whatever reason they might give, is, the time to buy/sell is when YOU are ready to buy/sell.  Don't wait for the "market to settle down" or wait for the springtime... the home you're looking to buy might be out there right now, and the buyer looking for the home you're going to sell might be ouot there right now.  Why wait?

May 01, 2012 11:44 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Great points.  Clients ask me why is it suddenly so busy.  You just named every reason. Thanks!

May 02, 2012 07:22 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I want to thank everyone for coming by.  I have put on over 30 solid offers in the last couple weeks and not one in contract.  Buyers have to understand what they are up against.

May 02, 2012 07:31 AM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Thanks Gene, As I always tell my kids, nobody ever prospered by waiting until things calmed down, when things calm down that's the time to move on to the next opportunity.

May 02, 2012 04:43 PM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Bob, There is lots of money to be made when things are unsettled.  

May 03, 2012 12:04 AM