Are Homebuyers Rewarded or Penalized for Patience in a Down Market?
In the real estate world, patience is sometimes a virtue and occasionally a curse. During a "hot" market, patience can cost you a great deal of money when buying a home. Typical real estate marketing need not be overly creative as there are more willing buyers than there are homes for sale. Prices rise quickly and steeply. Patience in buying a house can cost you thousands of dollars.
However, patience during a rapidly rising market can also make you thousands of dollars if you exercise it until the market turns down, as it inevitably will. During a down market, prices decrease, sometimes rapidly. If your patience lasted throughout the inflated market of the early 21st century, you will now be rewarded if you want to buy a house.
If you've been living in rental properties for at least the past three years, your reward will be even greater than depresssed real estate prices. The Federal Housing Stimulus Bill offers new homebuyers, like you, an $8,000 direct tax credit if you buy a home before December 1, 2009. To receive this credit, don't extend your patience past the deadline, of course.
As you can see, patience is not always a benefit, as it sometimes comes with a cost. However, properly exercised, patience in the real estate market can be highly rewarded. Understand that patience is not merely standing on the sidelines and watching the market pass you by. Patience involves staying under control, evaluating the market, ignoring real estate marketing focused on "buy it immediately" sales, building your knowledge base regarding both real estate and rental properties, and knowing what type of property you want.
Using patience as a tool, you should not only make better decisions when buying a house, you may also save and/or make more money. Impulse buys in the world of real esate can be quite risky, whether you are buying a home as a principle residence or for investment. While patience may mean you may miss an occasional opportunity to purchase a good property, long term success often depends on your patience quotient, even in a good market.
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What Is the Best Idea to Help Sell My Home in a Down Market?
So you want to - or need to - sell your home in a down market. You are probably concerned that -
- Your home won't sell at all.
- You'll end up getting much less than it's
worth.
- You might miss many other less-than-market-price houses while waiting for your property to sell.
While one or more of these events are possible, you can help ensure that your home sells in a reasonable time and for an acceptable price. The primary key to achieving this result: Patience. This does not equate to merely sitting around and waiting for something to happen. Effective patience when selling property in a down market involves -
- Creative real estate
marketing. While it is tempting to sell it yourself to
those who are buying a home, you should strongly consider using a
qualified REALTOR®. Unless you are a professional marketing
guru, these professionals understand your local market and have
experience in effective real estate marketing - particularly
important during a down market.
- Be realistic when setting your selling
price. Learn about your local market. What are similar
homes selling for in your immediate neighborhood? Don't factor in
any "short sales" (sales of property that sellers
must sell or face foreclosure) or foreclosed properties. Establish a
selling price to attract people interested in buying a home for a
fair price in your neighborhood. If you have amenities that similar
homes do not, you can increase your price a bit. If you're missing
some features, you can adjust downward within the market
range.
- Don't get discouraged. Understand that it may take longer in a down market to find a qualified person buying a home like yours at a fair price. You'll have to wade through those buying a house who feel only a bargain is worthy, who are afraid of making the wrong decision and do nothing, and those first time homebuyers who are simply ignorant of the process and the market. However, if you have a good house in superior condition and in a desired neighborhood - if you're patient - you'll find a reasonable qualified buyer for a price you can accept.
If you have a high patience quotient, you'll be positive and confident that you'll find that perfect buyer for your home even in a terrible housing market. The provisions of the housing stimulus legislation targeted for those buying a house will also help you make a sale at a stabilized price. The key: Patience.
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