It's a Fantastic Time to Buyer .. Inventory & Low Rates!

In most markets around the country, prices are dropping but they're not plummeting. Homeowners with year's worth of equity will still hold onto much of that equity, and buyers are finding that they have a chance to buy a home again. In the business, we call this a "correction." It's normal and even desirable.

However, a cooling market demands some different strategies for both buyers and sellers. Sellers have to avoid the pricing "hangover" from the boom market, when they could throw a For Sale sign in the yard, slap any outrageous price they liked on their house and get twenty offers in as many hours. And buyers must lose their desperation, understand that they are more in control, and realize that the current market is one of shopping for a deal, not throwing money in panic to avoid "losing the house."

Tips for Buyers in a Cooling Market

·              Now is the time to buy! So get pre-qualified, meet with a Realtor, and find the right priced home or cabin, but be willing to negotiate on well priced homes. You have the luxury of waiting to capture the better deals and then negotiate your terms if the property has been on the market for more than 60 days. If you drive around the Big Bear Lake area, you'll see that there is three times the inventory on the market right now as there was a year ago, and homes are taking longer to sell. Take your time, make smart offers, and be willing to negotiate for a well priced cabin.  Remember, 2005 was a pinnacle year, it is know normalizing, and home prices are becoming very reasonable.  Work with a knowledgeable, Top Producing Realtor or Team.

·              Home market´s like Big Bear Lake and Tahoe are "Baby Boomer" markets.  The Big Bear Real Estate market is very attractive to buyers, and is still experiencing brisk sales.   There is more inventory, and with low interest rates that makes it a great market to find a cabin, lakefront or mountain home.  The 8 year outlook in these areas are very good, due to the "Baby Boomer" generation retiring in areas like Big Bear Lake.  A great investment opportunity!

·              Nows the time to jump back on board the wagon for pre-foreclosures, foreclosure properties and distressed home sales. When everyone thought home prices would rise forever (and it's amazing how short people's memories are, isn't it?), many buyers abused interest-only, adjustable-rate "creative financing." Now they're "underwater," owing more than their home is worth and unable to make rising payments. Take advantage.

·              If you're an investor, target markets where speculation has run rampant over the past few years while also focusing on markets that are likely to boom in the next few years like Big Bear Lake. You will be able to buy distressed properties at low prices and properties with tremendous appreciation potential at the same time.

Tips for Sellers in a Cooling Market

·              In areas where housing supply exceeds demand, think hard about if you really need to sell. Don't get so upset by daily market reports of falling prices that you try to unload your property for a long. Repeat after me: real estate is cyclical. Prices, unlike the South, will rise again. Consider a longer-term exit strategy, like renting out the property. The rental market has become stronger as interest rates have risen. Being patient and finding creative ways to delay selling your property will help you in the long run.

·              If you MUST sell, focus your money and effort into creating curb appeal. Curb appeal alone can sell a house. You don't have to follow conventional wisdom that says you must dump tons of funds into redoing the kitchen or bath. The number-one feature of a home in terms of cost versus effect on saleability is front yard landscaping. Lay down sod, plant flowers, paint, and put in a flagstone path.

·              Be realistic with your goals for price and time-line to sell. Houses in much of the country are NOT selling at asking price and are staying on the market longer than in recent years. Many sellers have not yet come to grips with this new reality. They're asking high prices, and then reducing their prices multiple times before pulling their homes from the market in disgust. Don't set yourself up to fail. Hire a good Realtor and listen to him or her about price. Set your price aggressively compared to your competition and come up with creative incentives to attract a buyer, such as sharing some closing costs or including some high-quality furnishings in the sale.


In general, the common sense rules apply whether you're buying or selling and whether the market is hot or cool:
educate yourself about the market, have specific goals in mind, understand what your financial resources are, and don't make any deal for the short term. In the long term, real estate is always the best investment around.