"Okay, so the market's dropping, but is it the right time for me to buy?" This is the real estate question on many people's minds around Pasadena, but for the average person it's difficult answer apart from hearsay and speculation. So I'm writing this post to give you readers a solid framework to answer this question for yourselves.
The key issues to consider
With all of the media fixation on price, it's easy to assume that this is the only variable to consider; that if you find a great deal you should definitely buy right away. While price is very important, other factors also play a critical decision in whether to purchase your next home.
First is your personal TASTE in a home. If you're purchasing a primary residence, it doesn't matter how great the deal is if you can't stand living there. I've heard from a number of buyers, "Well, we're probably not ready to buy, but we might if you find a really great deal." This is an investor's mindset not a homeowner's. Even if I do find the best deal in Pasadena, it's worthless to you if it's not the size, neighborhood, or floor plan you're looking for. You just can't shortcut the home buying process.
Houses aren't like diamonds. When I was buying a diamond for an engagement ring for my wife, I searched online at www.dirtcheapdiamonds.com using the 4Cs: color, clarity, cut, and carat weight. All the attributes of a diamond are summarized using these four variables. You can go to http://www.jamesallen.com/diamonds/advanced-diamond-search.asp to see what I mean. What this means is that for loose diamonds if you want a 1.0 carat, round cut diamond with a color of H and clarity of VS2 or better, you order a diamond that meets those specifications, and you know you'll like it when you see it. But houses aren't like that. Just because you want a 3 bedroom, 2 bath house in Pasadena with a medium size yard, you won't like every house that meets those criteria. What I tell buyers, "Yes, there are many great deals right now, but we'll only know which one is great for you if we talk about exactly what you're looking for in a home." So taste is very important to consider. An agent can be very helpful in this area to draw out aspects of your taste you're not even aware of.
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