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Real Estate Downturn-when the investor gets Richer

By Carmen Tomlinson

Real Estate Agent with Re/Max Select RE

February 29, 2008 04:33 PM

I am currently working with several buyer clients who ponder "when is the right time to buy?" They have all inquired at one point or another "when do you think we'll hit the bottom in the market?" What a great question! If I knew the answer to that I could stand to make alot of money! The real estate crystal ball. I would definitely get a Patton on that!

The best advice I can give is that by the time we know we've hit the bottom of the market it will have passed us by. Interest Rates are low! It's funny, I hear some agents that have been in the biz for ages telling the new ones about times where the mortgage interest rates were 15%. FIFTEEN! We're in a market which is much more "normal" than we've seen in years. I remember a couple years ago writing an offer on the hood of my car while people were lined up to get in to see the home we just saw! It was a circus! Everyone got too used to a quick market!

Real Estate is still a very solid sound investment. It's not meant to be a short term endeavor.

I'm telling my buyer clients "Now is the time to buy!" Strike while the iron is hot! I know a slower market breeds uncertainty but a slower market is when you can leverage your buying power! Now is the time to buy!

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Mirela Monte

Buyers' Choice Realty - North Myrtle Beach, SC

Myrtle Beach Real Estate

I don't know about your market, but ours is showing strong signs of improvement. Oceanfront, all of a sudden, spiked from 1.67% of the inventory sold to almost 17% pending during the past 30 days. That is quite an increase...

Savvy investors are picking up property now, that's how they stay ahead. By the time the media gives the consumers the nod that it's OK to move forward, it's too late...

I've been putting some long hours lately, working with investors on oceanfront properties.

Feb 29, 2008 04:50 PM

Carmen Tomlinson

Re/Max Select RE - Maple Valley, WA

King & Pierce Counties WA

That's great to hear! I couldn't agree more. As soon as the media gives confidence it's too late. Very well said! Keep putting in those hours! Way to go!

Feb 29, 2008 04:56 PM

Esko Kiuru

Bethesda, MD

Carmen,

Couldn't have put it better. When investors and buyers and other dreamers wait for the real estate market to scrape the bottom, it's already heading on up and they missed the train. With mortgage money still very affordable, now is as good a time as ever to purchase.

Feb 29, 2008 05:09 PM

Michael Creel

InActive Agent - Bellevue, WA

Investors are having a field day right now.

Feb 29, 2008 05:15 PM

Esko & Michael,

Thanks for the comments!

Feb 29, 2008 05:31 PM

Vanessa Krempa

Princeton, NJ

Isn't there an old saying to the effect of- buy when others aren't and sell when others are in a buying frenzy? The trick is to show this to potential clients and help them understand the market better.

Feb 29, 2008 10:37 PM

Michael Cole

CPG Tours - Corona, CA

Carmen,

You hit on another excellent point. With interest rates as low as they are, a buyer could actually be worse off if interest rates rise while they’re waiting around for prices to drop more.

Feb 29, 2008 10:44 PM

Gita Bantwal

RE/MAX Centre Realtors - Warwick, PA

REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Buyers are still waiting for it to bottom out and I tell them I do not have a crystal ball.

Mar 01, 2008 10:39 PM

Margaret Woda

Long & Foster Real Estate, Inc. - Crofton, MD

Maryland Real Estate & Military Relocation

Your title is a pretty blanket statement, and not entirely accurate. My son's landlord recently lost ten properties to foreclosure, for example, since he was affected just as negatively as anyone else by the combination of low-equity financing, the downturn in the market, and inability to refinance increasing ARM payments. Real estate CAN be a good investment, but it's not always!

Mar 11, 2008 04:53 AM

Steve Loynd

Alpine Lakes Real Estate Inc., - Lincoln, NH

800-926-5653, White Mountains NH

When we sell land in the dead of winter the market has already begun to swing the other way, this type of property sale usually waits until the spring but not this year. Tell your buyers it's time!

Mar 11, 2008 05:27 AM

Real Estate Downturn-when the investor gets Richer

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