Buy Low - Sell High
We have all grown up hearing the term "Buy low - Sell High"; great words of wisdom for the stock market, but in real estate that doesn't always work. If you sell high, you end up having to buy high. If you buy high in the stock market, you can set your account to sell if your stock drops beyond a preset percentage. In real estate, most of us are living in our investment and cannot just set a sell point when the market drops. If you are tired of riding the real estate market, you can choose to just cash out, take your losses and rent.
If you can afford to make the payments and don't need to move for next few years then this market won't affect you much. Yes, the value of your home has depreciated, but so have all of the other homes in your market. History shows that real estate moves in cycles and eventually your home will increase in value again.
Maybe you want to buy a new home, but have decided to wait until the market improves; you might miss the market bottom and the best pricing.
"Sell Low- Buy Low"
The real estate market generally lowers and rises in slow arcs unlike the stock market that has sharp ups and downs. Even if you buy a home today and market goes down a little further, you will have a good chance for a gain when the market goes up again. You can choose to wait it out in your present home or sell now and wait it out in a new home.
Right now, we are in a good position to buy low and if you own a home, that means you will have to sell low. Yes, your home has depreciated, but so have all of the other homes!
If you are planning to move up to a larger home, this is a really good time. Higher priced homes have gone down more than the lower priced homes. Even though the higher priced homes depreciate at a higher rate, when the market goes up, they appreciate at a higher rate.
What position are you in? Ready for a new home or are you a move up buyer? Do you have a home to sell first? If you have any questions, please call or email me.
Ed Cassady 480-229-6610 or Ed@EdCassady.com www.RealEstate4Gilbert.com