I read an interesting article the other day in the LA Times in which a real estate investor made an interesting comment:
“If you are trying to time the bottom of the market, you will end up with the junk.”
I would like to add to his comment by saying that you won’t only end up with “the junk,” but you will also overpay for it and not get the best mortgage rates that are available.
How can I say this with such authority? Here are a few simple real estate truths:
1. Homes are selling in our current market and, simply put, the best homes are always the ones that sell first.
2. Homes that are priced the best in this market are always the ones that sell first.
3. Homes that are in the best condition AND priced the best are usually snapped up in the first week. YES, even in this market!
Now consider that we will not know where the bottom of the market is until we have passed through it and we are trending back up.
Knowing that the best homes at the best prices sell first and also knowing that there will be a delay in us knowing that we have reached the bottom of the market means that the only homes that will be available will be either overpriced or junk.