If you are thinking about purchasing a home and have struggled to find the ideal property at the right price this year, just wait until you have to compete with all the new buyers that will be entering the market next year. Especially with the elections behind us and the resolution of the fiscal cliff issue.
An effective strategy that has worked very well for buyers over the last couple of years, has been to find a house that they love and make a low-ball offer. In recent months, this strategy of making a low-ball offer has been much less effective. Most buyers using this strategy have been outbid by other buyers that have also found the property to be very desirable. The key to success with this strategy has involved minimal competition. The days of few buyers and unlimited inventory have come and gone. It’s difficult to find a real “steal”, and nearly impossible to find a highly desirable home at a great price.
If you have already struggled with this situation and your discriminating taste in the selection of quality properties has now become a hindrance to your success. You can count on all future properties that you like being very desirable to lots of other buyers. You can expect these quality properties to be marketed at even higher prices because other buyers are likely to offer more for fear of losing what they want.
The definition of insanity is the keep doing the same thing and expect different results. If you have been making low-ball offers on highly desirable properties with no success you are likely to get the same results, wasting your time and everyone else’s as well. It is best to refine your strategy by offering more on a property you really like so you can finally begin enjoying the benefits of your good taste.
Caution – Keep in mind the longer you wait the more it will cost (that is money that should go towards your net worth, not someone else’s!)