They're having a sale on real estate. Are you buying?
08/05/08 13:31 Filed in: Real Estate
| Bargains &
deals
I was
listening to a podcast from the US while sitting here
in London England (Silicon Valley show).
One of the folks on the broadcast said that Americans love sales and discount outlets. They like getting a bargain.
What made the person wonder is why Americans do not buy when houses are on sale. Why do they want to buy when prices are rising rather than hunt for a bargain when prices are soft or falling? Real estate is on sale and folks are waiting on the sidelines for an upturn.
Think about it. When you buy something on sale at a store you walk out feeling like you got a deal. That you have what you need and you save a bit of cash when you purchased. Can the same not be true for buying the home you wanted at a discount? Why focus on market timing as if the inventory of homes you want to buy will remain on the market at an ever decreasing price point? Real estate is unique in that there is only one piece of property at a specific point on the planet. Even condos tend to vary so that most in the same building are not completely alike (floor plan, upgrades, view or level).
My take is the folks who are not even looking at the ones waiting. Those who want to bargain shop are actively looking and they will actually buy when they see something they like. It is a bit painful to spend your time looking for a home. Lots of emotional hassle so when you find a place that really works thinking you can just wait longer makes little sense. You make your offer and wait for a response. You might not raise your offer much and you may walk away. If it is really the home you want to spend more than 1/3 of your future in (8 hours for sleeping, etc.) then you have to pull the trigger at some price if it is within your budget. To not do so implies you are rather happy with your present situation and are not fulling looking to buy.
Your views?
One of the folks on the broadcast said that Americans love sales and discount outlets. They like getting a bargain.
What made the person wonder is why Americans do not buy when houses are on sale. Why do they want to buy when prices are rising rather than hunt for a bargain when prices are soft or falling? Real estate is on sale and folks are waiting on the sidelines for an upturn.
Think about it. When you buy something on sale at a store you walk out feeling like you got a deal. That you have what you need and you save a bit of cash when you purchased. Can the same not be true for buying the home you wanted at a discount? Why focus on market timing as if the inventory of homes you want to buy will remain on the market at an ever decreasing price point? Real estate is unique in that there is only one piece of property at a specific point on the planet. Even condos tend to vary so that most in the same building are not completely alike (floor plan, upgrades, view or level).
My take is the folks who are not even looking at the ones waiting. Those who want to bargain shop are actively looking and they will actually buy when they see something they like. It is a bit painful to spend your time looking for a home. Lots of emotional hassle so when you find a place that really works thinking you can just wait longer makes little sense. You make your offer and wait for a response. You might not raise your offer much and you may walk away. If it is really the home you want to spend more than 1/3 of your future in (8 hours for sleeping, etc.) then you have to pull the trigger at some price if it is within your budget. To not do so implies you are rather happy with your present situation and are not fulling looking to buy.
Your views?
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