To Buy or Not To Buy?

Laurie,

I always say we are the ones that know better, and I think my only Competition is all of those people who know nothing about the business, yet they think they know everything. As for Foreign buyers, I am seeing alot of those lately.

Straight to the point, Post!! Great.

Tom Weiss

Buy, a lot to pick from and money is cheap to borrow.

Nobody knows the local real estate markets better than your local REALTORS®. 

And there you are...giving great sound advice, suggestions, # of properties on the market (by bedrooms) and ready, willing and able to give a helping hand.

Are you waiting for the bottom of the market?

YES 

Laurie - Excellent observation based on your experience.  The average buyer waits for the market to bottom but fail to realise that investors are skill at market timing and also have the cash to pull the trigger at the right moment.  I sure hope the consumers on the sideline will take your post to heart.

The Investors are coming.

Thomas,  The investors are already burning up the phone lines discussing the market and when to jump in.  Thanks.

Frank, Buy low, Sell high.  It IS a good time to buy now.

Sally, Absolutely, I am  your local REALTOR®

R. "Lazarus",  Your profile indicates that you are a contractor, I understand and wish you the very best of luck.  

Jennifer, Also, the buyers will all want great properties and will not want a large % of the available inventory.  Great properties come available a few at a time. 

Bill, Local Realtors generally do. 

Laurie, A lot of our local investors thought they could profit from the foreclosure sales. In our area most of the foreclosed homes are priced the same or more than the homes that are on our local MLS. So guess what?!! looks like the investors are back in the market again.

Mana, Here in Long Beach the foreclosure properties are priced at or close to market.  Considering the deferred maintenance usually involved in purchasing a foreclosure that makes them an undesirable purchase.  I am turning down buyers looking for foreclosures at the moment if they don't understand that there are much better buys out there for them.  I like working with investors, they get it.  

Laurie,

I really like this article.  We're seeing a big increase in investors in our market. Stands to reason as foreclosures are increasing as well. Buyers should start buying!

Great post Laurie!  You only know when the bottom hit when you are looking  back on it in hindsight!

Monika, The buyers who wait will be perplexed about the quality of the homes that are available to them on the market.  When they find one they want, they will find themselves in multiple offers unknowingly bidding against investors and losing bids.  I remember one gentleman who came to me after 6 months of searching and 17 lost offers, it will happen again.  History always repeats itself.  

Ana, Exactly! Thank you 

Ok, 12 comments, a feature. 214 NOT. Oh well, life is funny. Laurie, I so hope you're right on the investors coming, please investors come to Michigan!!!!! GM Stock is going up. That's a good thing.

Now is a good time to find some investor clients then. I always seem to get the ones that are still waiting and never do anything. I don't understand why anyone would not want to buy in a buyer's market. I don't think people understand the term. So they wait and wait.

Hey Missy...crazy, they posted she didn't get featured on her last fabulous post b/c she...well, let me send you an email on that...

Laurie's posts are great and educational...so are your's Missy  :-)

Karen

Missy,  Oh, the investors are coming Missy, make no mistake about that.  

Stacey,   Yes, they wait and wait, until they miss the market, go figure. 

Karen,  Thank you.  

To the mystery commenter with no name: 

Please come back so we can pick your brain about working with international clients.  Yes, it is a very good time to buy right now, that is why it is called "A Buyers Market", and yes, money is cheap now.  

Always the indicator- the reappearance of investors in noticeable numbers.  Thanks for confirming that for me- we need to proactively seek out this contingent right now.

Hi Laurie - we're already seeing some indicators that the market is beginning to change ever so slightly.  Very little gap in some selling prices and asking prices, days on the market are decreasing, and we've also seen multiple offers on some properties.

My last few listings all went under agreement in less than 2 weeks, multiple offers on each, and for the asking prices.  Sure, that isn't happening on all listings, but it is happening again, and not just on my own listings.

Hindsight is always fabulous, and when the market changes, people will know because it will have passed them by and it will be history telling them when the bottom WAS.

Ann

Laurie- I just came form the seminar on the NJ real estate state of affairs. The bottom line for both buyers and sellers -now is a good time to act. We have very few foreclosures, there is plenty of choices for buyers at historically low interest rates, and surprise, surprise -homes priced right sell in less then a month.

Laurie, The investors are starting to awaken from their slumber.  It is time to start marketing to them.

Ann,  Your market is awakening slowly, that is really nice to hear.  Here in Long Beach our pricing is just about to jump down into investor territory.  And yes it will be history telling them when the bottom WAS, you are so right.

Faina,  Yes NOW is the time to act.  I agree wholeheartedly.  

Laurie, you are so right on the mark!  We are watching REO's slide back in price and the dumpiest little thing that would cost just as much money to bring it up to last month's market value will have four offers on it and several other agents trampling through when you are in there for a half an hour with clients.

Here's the deal.  Many of the REO agents have not convinced the bank to lower their prices.  Show those that are still overpriced and listed by the larger REO brokers in town.  Jump on THOSE properties NOW with lower, yet reasonable offers so you don't end up in a bidding war when the price does finally get lowered.

Not hard at all. 

Edited to add:  I changed my blog writing style up just a smidgeon to attract investors starting at the end of August.  Response has been overwhelming and exhausting.  I have had only three days off since Labor Day! 

Laurie - a client and I just had a conversation about foreign investors - thanks for giving our conversation validity

You said:  A year ago if a Long Beach buyer approached me looking for a single family Long Beach home under $500,000 they were pretty much out of luck.  

And in another year you will be consoling people who didn't take action.... 

Renee,

From the way I see REO listings being handled here in Long Beach, the banks would be better represented by spreading the wealth around and utilizing the services of more Realtors with fewer listings each.  They are under-represented, the agents are ill equipped to handle 60+ listings each and are proving it by the days on market and the bad pricing, they are not moving them. 

I showed an REO last week that was filthy and filled with the left overs of the prior owner.  The built in furniture in the bedroom was damaged - every piece - it looked deliberate, pieces of the drywall were cut out inexplicably, the utilities were off, it was a mess.  The unit needed a lot of work and was priced at market.  It doesn't stand a chance in hell of selling at anywhere near the listed price. 

Attracting investors now is a very smart move, but you are a smart cookie.  

Thesa,

I have found myself in conversations about foreign investors several times the last few days myself.  Glad this helped, but you are a great agent, you don't need the validation. 

Colleen,

You've got that right!

I always like to hear the contrarian voice Laurie... there are too few these days... 

Excellent post. And you are very correct.

Ahhh Patrick, but I don't have a choice, it must be in the genes. 

Thank you Bob & Carolin.   

We closed something yesterday. On mkt. 2 weeks before offer. Got 98.5% of list. 2-week close. All Cash. $717K. Russian, Bay Area couple. Three other offers would have come had the escrow not been so quick and so solid. The Buyer knew the deal was a steal, and it was.

Before them, another bay area couple made low offer. They would not believe their agent or us. They snoozed. And lost. To teach a lesson after that low offer, we raised the price $30K over original list.... and got most of that too.

Yes Laurie, you're right, and in a few scattered instances like this one, we're just starting to see smart, capable folks recognize and take the best off our market too.

Cheers... 

Gary,

There you go, price it right and it will sell.  

Funny thing is I have a lot of buyers right now and they just cant seem to find what they want in their price range.  I show them the best of what is on the market, priced to sell (below market) and they just insist on making ridiculously lowball offers and EXPECT their offer to be accepted.  What amazes me is their anger when the offers are countered near asking.  I explain it all to them, but they prefer to believe the media instead of the local professional who knows the market.

Quite frankly I just say NEXT.  How much time can you spend with them if they don't GET IT?  When they lose they want to move on and see more properties.  When they have seen the best of what is available what the heck am I supposed to show them?  Like I said - NEXT!

Congrats on your sale.   

Laurie,

Investors have always played a large role in our local Hilton Head, SC real estate market.  This past summer, they were mostly absent in the villa market.  We are certainly an international community so it will be interesting to see when they start some serious buying. 

Diane,

We have always been investor heavy here in Long Beach as well.  Our market dried up for them about 2 years ago.  It's looking like they should be jumping back in real soon.  Not the fix and flippers, the buy, hold and sell when the market is up crowd.  

Buy low, sell high.   

I love the folks who want to wait for the bottom of the market.  How exactly do they know when the market has bottomed out?  When it goes back up but at that point you have missed the bottom.  That is why buying today and locking in your mortgage rate today at 6 to 6.5% range is the smart and safe bet.

Sam,

When the investors jump in they will change the market.  The buyers won't know the bottom any more than the sellers who missed it.  I think the thing they miss when they hear buyers market is that it mean it is a great time to buy.   

Buy low.  Sell high.   

Concise, easy to read and clear message; that's what I love about your writing style!  I was just called by an out-of-state investor yesterday asking where and what to look for in our market.  Since we don't have the highs and lows that you do there aren't as many flipping opportunities but our incredible growth offers investors an opportunity to buy in the "next hot spot" in the development chain. 

Diane,

Thank you.  The fix and flippers are not the investors I am expecting to re-enter the market very soon.  I expect to see the saavy investors that recognize the great low prices, will buy, hold, rent out and wait for appreciation.  Development and re-development areas will have greater appreciation which makes them great purchases when prices are low.

Buy low.  Sell high.  

Laurie, it's interesting that for the most part here we don't have the rents to enable someone to buy and hold on accept in the very very low price ranges.  Our market is truly very stable and almost boring...none of the highs and lows you experience, just consistent growth and some hot spots.  Waterfront property is the one exception but with our drought they are now 'mud front'!

Nobody knows when it hits bottom until you can visibly see the numbers turning around.  I agree, we are probably not at the bottom yet, but soon it should be coming!

I think the buyers are waiting for the media to tell them that we've hit the bottom of the market. Of course, by the time the media reports it...it will be "old" news. There will be many who snooze and lose. Too bad. They should've called their REALTOR and got some expert advice.

Laurie,

There is a proven method I share with all of my clients that allows them to perfectly peg the absolute bottom or top of a market.  It is guaranteed to ALWAYS be very accurate. 

Put on the rear-view mirror glasses and see when it happened a few months ago. 

That's right.  The only way to spot it is to see that it is gone.  A month too soon, and you find a load of amazing bargains.  A month too late and you find the picked over junk left at the end of a "One-Day Sale" at Macy's.   

Just like with the stock market, you will not know where the bottom of the market is until we are well off the bottom.

I'm in the middle of a couple of remodels and we are holding them for 6-12 mos to buy some time for the international buyers.....they are coming in to the West Coast in throngs.

I was surprised that Washington State was not in your list of top 3 states although we are seeing less of the international buyers in the residential market and many more in the commercial market. 

Ryan,

The mention of the 3 states was a direct quote from NAR's article linked above.  You might find it to be an interesting read.  I hope that works out for you.  Isn't holding the properties for that amount of time rather expensive?   

Diane,   I wish our markets here were stable as well.

Ronald,  I think it is coming soon also.

Kelly,  You are probably right.  Why the media has more relevance than the local Realtors is a mystery to me.   

Lane, I like your method - a lot.  You should post on that.

James, Exactly

Laurie...Help me understand...Why is common sense not common?  Why do most of us miss opportunity even when it slaps us in the face?  Why do buyers fear a market that smart investors are jumping into with both feet? 

Lauire, you sure make a compelling argument on why now is the time. I happen to agree with you. Waiting might bring a lower price but will it bring a lower interest rate? There really is no guarantee. With stats like the ones you have shown, now is the time, or many buyers may miss out.

Laurie - When they trust us, they do better. When they know more than we do, seems like they walk away empty handed most every time. Am working on a post addressing this... now thay this week's CE classes are all behind us.

Lola, It is called a buyers market for a reason.  Funny the buyers want in a sellers market and the sellers want in a buyers market.  I guess the grass is always greener and some just don't do what makes perfect sense to others.  It's got to be the media.  I wish they were held to a higher standard. 

Stephen, I think the Long Beach market will probably go down a bit more over the next few months, but I see a bottom coming, and soon.  The investors will not wait until the very bottom, they are beginning to stir already.  It is a given that many buyers are going to miss out, it is the mis-information the media is feeding them.

Gary,  So true, looking forward to your post.

Here there is a trend that I have just noticed over the past couple of days - Builders raising their prices - I am thinking that a trend may be in the works

David,

I have not seen that number yet.  Don't understand it either.  

Your posts are also so thoughtful and well-written.  Thanks for another excellent piece.

Thank you Jayne

It is a GREAT Time to buy!!

Great post, as always. I'm seeing most buyers sitting back just waiting to pounce when they feel the markets is at rock bottom. On the flip side, I am seeing the savvy foreign investor buying. Especially now that the Canadian dollar has become so much stronger they now find themselves able to afford a vacation home down south. When the market is slow and clients are few and far in-between here, it's time to think outside the box and look at our friends to the North.