Rates Low, Prices Faling - Buy? Maybe

Is now the time to buy? I say maybe. Sure rates are low and they are certainly moving lower, that's a good reason to buy. Prices have come off their highs but are likely going to continue moving lower, maybe not the best buy indicator. But, here's the thing, if you are a buyer looking to buy a home what is more important? Finding the house the meets your requirements or just getting the best deal and terms possible at the absolute low point of the market?

Yes, spoken like a good salesperson, right? Well, we need to find a way to convey this message properly as real estate professionals because we are hired to advise our clients and negotiate the best deal on the house that meets their requirements. All of our clients should be actively looking at homes now, getting daily alerts of new home coming onto the market. They should even go see them with their agent so that agent can get a better idea of what homes fit their needs and wants. If they find the right home, then buy it! Negotiate on price and terms, let the Realtor do their job. If their efforts do not yield a deal that is fair or better than fair to the buyer in this market, then move on to the next home that is perfect for you.

Buyers need to be looking at this as a place they are going to live for a longer period of time than in the past. This home is not going to the piggy bank t once was. A good agent will be able to teach them how to make money in real estate in other ways than solely in their primary residence. Which brings me to investors. I'm so glad to see the professional investors back in the market. A good sign for sure. Not the I wanna buy homes with no money down and paint 'em and flip them for 50% more money. Investors need to know how much capital is required and is my return good enough to justify the investment. That simple. If I put 25K into a house, including down payment and repairs, can I rent for a year and return 15-20% + on my investment. Or better yet, return 35% in a year's time in a lease purchase arrangement? When an investor asks the right questions, I get excited!

Is real estate a good investment? Have you checked the buy and hold strategy on Wall Street lately?