Real EstatE
5
Reasons
to Buy
Real Estate
NOW!
It’s time to start considering a re-entry into the real estate market.
After all, simple supply and demand dictates it is a buyer’s — and
investor’s — market.
Many savvy real estate investors have to $190,000 in six to 12 months.
made excellent returns by moving Though this is a valid concern, it can you can ensure
against the trend with careful market be minimized with careful research
timing. The thought process is simple: of a specific market. You can further
your investment
When everybody is buying, it’s time ensure your investment will hold value
will hold value
to sell. And, when everyone is selling, by making an offer that is 10 percent to
it’s time to consider buying. 15 percent below the current market value.
by making an
Here are five market conditions that The days of bidding wars and escalation
offer that is
have investors thinking today just might clauses are gone. Homes are no longer
be the perfect time to buy real estate. selling for more than market value, and
sellers are lucky to get the list price. Now
No. 1
L
ow prices
is the time to invest in a real bargain.
10%-15%
Prices are down in most
below the
real estate markets across the country. In
fact, the national median existing home No. 2
g
reat selection
The housing inventory current market
price for all housing types was down is on the rise, meaning there are more
7.7 percent from a year ago, to $200,700 homes available for sale. According
value.
in March from $217,400 during the to NAR, it will take more than nine
same month last year, according to months to sell the national inventory of
the National Association of Realtors® homes at the current sales pace. In some
(NAR). In many markets, the drop is markets, such as South Florida, there is particular and take your time finding
even more substantial, especially when more than a 16-month supply of homes. exactly what you want.
you compare with 2006 prices. In addition to lower prices, this large
Greed is one of the biggest culprits inventory means a greater selection for
keeping buyers on the sidelines. They are buyers. As an investor, you can look for
No. 3
Motivated sellers
When faced with the
hesitant to buy now because prices may a home with the features, amenities, and
possibility that their house could sit
continue to drop. No one wants to buy favorable location you desire. By getting
on the market for a year or more,
a $210,000 home and see its value drop in the market now, you can afford to be
sellers become motivated to work with
prospective buyers. Not to mention the
fact that the already sodden market is
being further deluged with an increase
the days of bidding wars and escalation clauses are
in foreclosures, short sales, and bank-
owned properties, providing sellers
gone. homes are no longer selling for moRe than even more motivation to be flexible
so they can sell their properties.
market value, and sellers are lucky to get the list price.
Seller motivation extends far beyond
accepting a lower offer. Sellers today
now is the time to invest in a real bargain.
will consider owner financing, where
growingwealthmag.com I Growing Wealth I July 08 I 31
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