Now, I must admit, this will probably be more of a rant than a blog post.
Over the past month I’ve heard this “logic” on more than one occasion: “I wouldn’t buy right now, it’s a horrible time to buy, I’m waiting till the market gets better.” While discussing this “logic” with one of my investor clients who’s completely capitalizing on today’s market, they responded: “It’s like there’s a big sale at Nordstroms and waiting for the sale to be over before buying the dress and shoes you always wanted.”
She couldn’t be more right.
There is a Blue Light Special in your neighborhood right now, and many are ignoring the sale of the century.
“But Brandon, I’d have to sell my house for less so it would be a loss, right?”
Not really. Here’s why.
In a rapidly increasing market, you’ll obtain a higher sales price for your home than you would in today’s market. You’ll get that happy feeling like you made a buck. You’d better hurry and re-invest that money, remember, you’re in a rapidly increasing market. Every day that passes, your money buys less. You actually get less home for the money than you would in today’s market.
We’re in a trough after a drop in average sales price. You sell your home for less than you had expected (based on inflated numbers of the past), but BONUS… everything around you is discounted too. You need LESS money to buy MORE house, and for many properties… the deal gets better every day. With proper negotiations and timing, you can actually score a better deal and make up for the less than desired sale price you received.
Studies show that the “Bank Owned” status on a property has a negative 20-30% impact on the market price of that property. Usually because of condition, but everyone who looks at them wants a deal. The BUYERS demand it.
You sell your home and take 10-$15,000 less than you’d hoped and turn around and patiently score a great deal on a bank owned property… You not only skip a few rungs on the ladder, but you use a jetpack to land on the roof. Over time (nobody has a crystal ball, but history is a GREAT reference) the wealth created from that move will be far greater than “waiting until the market goes up before you buy.”
Before you brush off today’s market, take a look around. What opportunities are you missing?