Buyers Have Challenges Too
In today's remarkable real estate Market it isn't always easy for a Buyer to make a decision. Price is a great attractor for Buyers. That we have great pricing today is a given ... or is it. There is often the quandary in a Buyer's mind of when to make an offer. Has the market bottomed out? How far will it go if it hasn't? Timing the Market is like catching a falling knife. There is so much more than price when buying a home.
First one must determine why the home is being purchased. Are you a first time Buyer enjoying the mystery and anticipation of owning your first home? Don't let emotion overwhelm your good judgment. Be sure to ask the many questions rattling around your brain, and make sure you understand why you are being asked or advised to do something. Your agent should help you make good decisions that will stand the test of time.
We are again seeing Buyers acquiring retirement homes before needed because of the great pricing. They are buying less than they would have a few years ago, an indication of the priority adjustment that much of our society is living with as a result of the economic turmoil of the past years. They are keen shoppers, price driven, and very sensitive to the amenities they want in their retirement home being the seasoned home owners that they are. They are often buying with diminished retirement funds before selling their existing primary residence so they are very cautious in their approach. That becomes their buying dilemma - price vs. amenities.
Investment Buyers tend to look at a broader picture as they compare investment opportunities for their cash. Do they hold their stock, sell their non-producing real estate assets, buy gold, etc.? Every investment opportunity has its ups and downs and each has an inherent risk factor that varies according to the potential return on the investment. Do you want a safe yet nominal return, or will you take a risk? We've seen the flow for many years of money moving from real estate to stocks and vice versa. The profit-taking in 2005 and ‘06 started our price decline. Subsequently, stocks were running up and it seemed like it was time for the money to return to real estate when "the wheels came off". The stock market fell hard.
We are currently seeing more investor activity as the Dow Jones tops 12,000, a dream not so long ago when it was below 8,000. There seems to be a better potential for appreciation with real estate acquired at today's low prices with the natural pent up demand for housing as our population continues to grow without the corresponding new construction to provide housing. Easy, right? Not always, as any number-crunching investor will tell you. There are many considerations including cash flow, maintenance, market dynamics, up/down-side potential, tax benefits or exposure, etc. It takes a lot of thought to invest successfully.
Our Advice: No Buyer wants to make a bad move when things seem to be so much in their favor, but how do you know what a good move is? A good move is only one that works for you and your life. What you can afford financially and emotionally. Identifying that isn't easy without a lot of help with perspective. It doesn't matter if you are a seasoned investor or first time home Buyer, the process for each has its challenges. Your experienced agent will give you the perspective you need to buy with confidence.
There is no black and white real estate acquisition formula. It is important that you identify your goals, wants and needs and then act accordingly to achieve them on your terms.
When it comes to choosing professionals to assist you with your real estate needs... Experience is Priceless! Lisa Wetzel & Jim Valentine, CDPE, SFR, RE/MAX Realty Affiliates, 775-781-5472. firstname.lastname@example.org, www.carsonvalleyland.com
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Lisa Wetzel and Jim Valentine are the authors of this blog. Lisa, Jim and Jessie are experts in Carson Valley , Carson City and the tri-county area of Douglas County , Carson City and Lyon County. Call our team anytime at 775-781-5472 or 775-781-3704. To Search for Homes go to: Carson Valley Listing Book or visit our website at www.CarsonValleyLand.net or www.CarsonValleyLand.com