Don’t Buy That House – It’s a Money Pit!

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Right now we are sitting in the cusp of a very difficult market. You may be wondering how that could be since both buyers and sellers are enjoying certain benefits of the real estate marketplace these days. But the truth is that the balancing act can be a difficult one to manage when it is neither a full-fledged buyers’ market nor sellers’.

One thing to note, however, is that just a year ago our inventory levels were about 50% higher than they are now – leading to a very different outlook these days for everyone involved. With very little inventory, comes increased demand and with increased demand comes the room for appreciation. In fact, for the first time in years we are finally seeing an appreciation on home prices of up to about 11%!

Decisions Made Purely By Emotions Are Counterproductive

But while sitting in the midst of this precarious market where neither side is fully in “control”, it is critical to make smart, savvy decisions that are not persuaded merely by emotions. Sure, you may see your dream home and fall absolutely in love with – but is that all that should go into it before you make the very important decision to buy it? And for sellers, the emotional quotient comes in when you consider how to price your home. There is equal opportunity to botch that up when emotionally charged decisions get the better of market savvy.

Base Real Estate Decisions On Facts and Practical Information
How best to handle it then? Simple. Bring in the facts and use the facts only to determine where to go next. Buyers will need to evaluate everything about the house, the locale, price for value and more. Sellers need to set realistic price goals and work with their Realtor to come to a reasonable number rather than just what “feels right”.

There are several important questions to ask when seeking the perfect home; should I offer more than last year’s asking price? Is a low-ball offer the way to go? How badly do I want this property? Similarly, sellers should be asking things like “Is my price driven by what sold down the street or rather what the market indicates?” or “How motivated am I to sell; enough to offer a low price to generate increased interest?”

The most important thing to remember is not to rush into any decisions – and certainly don’t let your emotions get the better of you. Base everything you do on the facts, consider market statistics, trends and the advice you receive from your real estate agent. Keep an open mind and be receptive.

I invite you meet with me so together we can consider everything there is – and you can make informed decisions about your real estate goals and how to achieve them. Because neither you nor I want you to end up in this situation (get ready for a HUGE laugh...Tom Hanks and Shelley Long in “The Money Pit”).

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