After much discussion and analysis with one of my clients, I noticed something that is riding heavy on every Buyer's mind...but most of all every Seller's mind: WHAT DOES THE BUYER'S MARKET STATISTICS MEAN TO ME?? This question is not only fair; it's very reasonable and should be pondered: this analysis shows me the foundation of an educated consumer. But what the Media is saying about Oregon's "Buyer's Market" is something that should be questioned. Now take my analysis for what it is: this might apply to you, yet it might not (depending on your financial situation, housing situation, etc). But providing "food for thought" from someone in the industry is always healthy...it allows for you to ensure whatever your opinion is YOURS, not what the MEDIA tells you...
Typically, Buyer's are happier in a "Buyer's Market", as they have more options at their feet. These options can include (but aren't limited to) a larger house inventory, lower home prices (than past statistics), more intricate offers are looked at more carefully...it's wrapped around the "more for your money" concept. I encourage every Buyer of mine to take a look at what they want, and why. If this is something that is reasonable for their lives (financially, emotionally...) then I highly suggest it! Rates are higher than they may have been, but in the bigger picture, I think, are reasonable, because look at the opportunity cost that's involved. You are able to have a place to call "home", you can decorate it any way you want, you can remodel it, it allows for tax breaks, you can invest in it, and most of the time yields an investment right back to you! Obviously, this would be a personal choice on your part as a Buyer (whether the rates are fair), but especially with prices coming down and getting that home at that "more for your money" price might be worth the second look!
But here's something that I think is overlooked: what about the Seller? Mr. Seller has a home that he wants to look into possibly selling, or turning into a rental property, or the like. What should Mr. Seller do in this Buyer's Market? The various mediums of media portray the same image: "if you sell your home, you won't get what you want for it because of the market prices, and it will sit on the market FOREVER, and it will bring you much frustration and you are STUCK!" But wait...let's look at something else.
First, I educate all of my Seller's in the same way:
(1) As your Real Estate Agent, I am here for you. If you would like to explore the option of putting your home on the market, I am more than happy to assist you. I as a Realtor have access to the resources that will help you...I have access to records, finances, history, my team of experts, etc. that help make a highly educated decision for YOU. This is not about me, this is about YOU. I will provide you all of the information I have, and together we can work towards a solution. The challenge here is pricing it right and understanding the pluses/minuses of putting it on the market now. But as an expert, and having access to a network of other experts in a variety of fields, your decision will be the right one for you.
(2)We can conduct a CMA or Comparative Market Analysis to see what your options with your home to see about pricing it if you do want to put it on the market, but this also opens the door the other way...what to do with it if you DON'T want to put it on the market.
(3) We can get you connected with the right lending professional to explore your options regarding the equity of your home. Possible re-finance? Maybe pulling the money out to buy an investment property! This way you are using the money to grow your retirement, portfolio, or asset list. There is a long list of things that can be done regarding the equity of your home, and when I connect you with the right lending professional, all of those options will be at your feet. Again, I am there every step of the way to ensure it's done, and you are the one walking away with the answers you need.
(And many people are looking at this option...look at the recent article published about the increase in Mortgage Application Rates!)
(4)The largest, most common misunderstanding regarding a "Buyer's Market" (especially from what I have researched and read lately) is not looking at the full spectrum of options. My job is to look at your Dreams, and help you attain them. That is what The Larrondo Team stands for. I have created this network of professionals for YOU. In looking at your Dreams, let's look beyond what the Media commonly says (which most are true depictions of the current market state) but look beyond this to see the rest of the options available to you. That's my job...to open up all of the options possible.
(5)If ever you have any questions about the Market, the current conditions, what the statistics are, etc., I am more than happy to provide them to you. My job is to keep up on what is going on...it's my profession, and as your trusted expert, it is critically important for me to keep on top of the current market conditions. This helps me help you more than you might be able to see. An experienced, knowledgeable agent is one who informs you, assists you, teaches you, and gets you to the place where you can achieve your Real Estate dreams! And THIS is where my passion is...to help you achieve your Dreams.
These points for my clients who are looking to sell, or thinking about it, are important because they are all about my clients. I want you to know, as a consumer, you have a lot of power! But fully understanding that power and then using it in the most productive, constructive and profitable way possible is my job as your Agent.
For many of my clients, as I said in the beginning, are looking at what the Media says and holding it too tightly in their hands. Yes, we need to look at what the Media says: a lot of times they report on interesting, factual, and important things. But my message...the point of this Blog...is to let you know that there are other options out there for you...and as your Agent, that's my duty, and your right to be informed.
If you are looking to buy or sell a home, please don't hesitate to contact me with any questions!