Sometimes reading real estate agents' blog posts, I just can’t help but remember this street scene on Brighton Beach in Brooklyn, where to hear Russian is more common than to hear English. An older lady was carefully checking tomatoes on the grocery stand, when an employee, a young Mexican guy, approached her and smiling ear to ear said in perfectly sounding Russian "Buy now, stupid, it will be expensive tomorrow".
Some moron taught the unsuspecting Mexican, that it was a nice thing to say.
I keep running into blogs, where agents insist that the time to buy, or the time to sell is now. Of course, if you are not new to reading agents' blogs, you would notice that the time is always now.
And if the market is sort of indicative of being close to the lowest in years, I can understand the idea of buying now, but I do not see how it can work both ways, meaning both for Buyers and Sellers at the same time.
Just today I read a blog on Active Rain suggesting that the time to sell is now.
What is the logic behind the statement? Well, it is based on low interest rates, stronger local job market, more active real estate market, etc.
Ah-ha, it means the market is getting better for the Sellers. “The Sellers are able to demand higher prices than in the recent past”.
“There’s never been a better time to sell your home in…” Really? And what about 2005 or 2006? Were the prices higher then, as is the case in our area? And if yes, then how about “never”? In other words, is it true? Or is this the case of Realtor cheer-leading, and all it means is “Buy now stupid, it will cost more tomorrow”?
Can the Seller benefit from waiting?
When we see the shift in this Buyers’ Market/Sellers’ Market cycle, and the prices start going up, it takes a few years to reach the peak, so it is common to get less money when you sell in the early days after the shift happens. If the market is getting better now, can you, in all honesty, say that the Seller will make more money today than in 2-3 years?
People still sell and buy in any market, and there are plenty of other reasons why they would sell at a specific time, but from the purely market standpoint it seems that waiting could be a wise strategy.
Would you tell it to the Seller? Would you tell them what you really think? Would you advise the Seller to wait if they do not have to sell now?
Often times they need to sell now, but at least I tell them what I think will be happening with the market. I think agents telling people that the best time to sell is now is a lie. How can they know?
I can only guess when it is a good time to buy or a good time to sell, but I will know when it was the best time to buy or sell only after this time is over.
Yes, real estate is local. And the best time to sell is when it is the right time for the Seller. This time may be different for different sellers. Price is not the only factor here. Life with all its manifestations is. Some can wait for better prices, others can’t.
We somehow forget why people are buying and selling. They buy when they need a property and can afford it. They sell when they need to dispose. And as long as you can afford buying, when you need the property, and sell and not lose money, you are in great shape.
And for us, agents, the best thing is to be honest. «REALTORS® shall avoid exaggeration». It is not me, folks, it is Article 2 of Code of Ethics.
Don’t you think that general public does not really trust us for this simple reason that as an industry, we always tell them “Buy now, stupid. It would cost more tomorrow”?
Which moron taught us that?