Lately I’ve had quite a few people ask me about timing the market – or when we’re going to reach the bottom. Everyone wants to get a good deal, and lately everyone wants to get the BEST deal. I’m no different and I’m also an active buyer just like you. So can you time the market? In a word, No, market timing is nearly impossible and the reason is that the only way to know you’ve reached the bottom is when things are on the rebound.
Look at the stock market for example – when the market dipped into the 8000 range people were still SELLING – now the market is coming back up and it’s clear that the last dip was the time to BUY.
Most people want a good deal but have no idea what that means to them.
Here is my 6 step plan to getting a GREAT deal:
1. Define what a good deal means to you as clearly as possible in all the ways it’s relevant [price, style, size, location]
2. Look at closed sales to get an idea of how realistic that ‘good deal’ is right now
3. Keep track of interest rates – a dip in rates can save you more than a dip in price sometimes
4. Have a definite time line
5. Stick with the parameters you set
6. Make an offer when you find the deal you’ve defined
If you do this you will be able to judge properties more effectively and know when that gift horse walks into your barn. In any market in any area the really good deals still go quickly. I think your ability and willingness to make an offer when the deal comes available might be the most important factor. Get your pre-approval lined up now and start socking away that downpayment money. If you wait until the market is on the rise you’ll be a buyer in a sellers market and that’s the wrong strategy if you want a great deal.