I think right now is the scariest real estate market we have seen in a long time, for buyer’s at least.
I know, it seems crazy when prices are going up and there is a frenzy to buy any house as soon as it comes on the market……but that is what makes it scary.
When the market was so bad years ago, a buyer had their pick of dozens of houses. They were able to make a good choice. If the market dropped even further, you knew it would eventually come up. You don’t have that luxury when you are at the top of the market. You just hope it continues to go up more and more and more. You never know where the peak is until it starts going down the other side of the hill.
I cut my teeth in real estate in the bad market. Many people who did not use me as their buyer’s agent contacted me to sell their homes when times were tough. Many of them had bought in the early 2000s when the market was hot. They would tell me how they had lost several houses and they didn’t want to lose again so they bought the house they now wanted me to sell. They’d say the market was booming so they didn’t think they could go wrong with a full price offer because that was the only way to get a house. They were thankful to have even gotten their house. The very house that at the time they were saying all this, had become a noose around their neck, preventing them from relocating for a better job, dividing families because one spouse had to start a new job while the other stayed behind praying the house would eventually sell.
The market they bought in was just like it is today.
While I don’t think we will ever see the market crash again any time soon, you know the market will go back and forth from being a seller’s market to a buyer’s market.
That is why I think being a buyer in today’s market must really make a wise decision.
Many buyers today, again, feel lucky to have gotten their house that backs to a business, is on a busy road, has a terrible lot. They just feel lucky to have even gotten a house. Period. Many of them will call me when it isn’t as easy to sell because the agent that sold them the house is no longer in real estate.
I wish they’d call me now instead of using their uncle’s neighbor’s cousin’s babysitter who just got into real estate last month.
Here is what I would tell them:
“This market is tough. There is no easy way to get a good house. Yes, you will pay top dollar. Yes, you may lose some houses. Yes, you may even have to find temporary housing while we wait for a house that will be a good investment. This market will cost you something-you can be burdened now and end up with a great house, or you can be burdened when you go to sell. Whatever house you buy should set you up for your next bigger and better house. You want to build equity to use as your next down payment. You don’t want to have this house ruin your life should you have to sell in a buyer’s market. So, let’s pick a winner that you will enjoy and that will be a solid investment for your future. It isn’t going to be easy, but I am committed to making this happen for you.”