Should you try to pick a bottom in the real estate market?

I have heard statements like this lately, "We are going to wait to see if we can get a better price in a few months." Buyers are a little apprehensive right now and rightfully so. 2004 and 2005 were boom years for real estate. We are currently going through a correction phase and home prices in Sarasota and across the nation have dropped. I have not verified it but some segments of the market jave gone back to 2004 prices.

Should you try to time the real estate market by predicting when the bottom will occur? It depends. Are you trying to buy a property to speculate and flip? Then you need pick the bottom fairly accurately or buy a home at wholesale and add value to the home. Do you need a home to live in and plan to be there for a number of years? Then it is not as important to pick the bottom of the market. You probably aren't going to do it anyways.

If you plan to get a mortgage you should take into consideration the current rates. The mortgage rates dropped again this week. 30 year fixed rates are at a 6 month low and hovering around 6.4%. Numerous financial institutions are forecasting higher interest by the end of the year and into next year. It is possibility that you will get a lower sales price down the road but have a higher monthly payment because you are paying a higher interest rate.

If you are looking for a home don't be afraid to make low ball offers. You buyers have the leverage right now. Most sellers will entertain an offer. You might have to make a few of them to find that motivated seller. Give me a call if you need some help. 308-6766