Everyone is howling about the low interest rates, even myself on occasion, as THE reason to buy property. "Buy now while rates are low!" It is the ticking clock method of persuasion.
However, if your market is particularly hot, and properties that fit your criteria are receiving multiple offers, then it might not be the best time to buy.
"What?" you may ask. "How can things not be on sale already since prices are so far off from 2007?"
Keep in mind that 2007 prices were hyper-inflated, nobody is predicting yearly future appreciation rates, and low interest rates don't justify a bidding war.
In many markets and in almost every sector, investors are trying to buy as much real estate (especially residential) as possible to either rent or flip. If you find yourself in a multiple offer situation on a property where other buyers are throwing cash around like a ticker tape parade, don't buy the property.
There are more foreclosures coming; the shadow inventory is huge. Don't let your emotions hijack your wallet in a bidding war for anything at any time. If you can't sell the property you intend to buy for $X within a week of purchase and get what you paid, you're probably going to pay too much.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
However, if your market is particularly hot, and properties that fit your criteria are receiving multiple offers, then it might not be the best time to buy.
"What?" you may ask. "How can things not be on sale already since prices are so far off from 2007?"
Keep in mind that 2007 prices were hyper-inflated, nobody is predicting yearly future appreciation rates, and low interest rates don't justify a bidding war.
In many markets and in almost every sector, investors are trying to buy as much real estate (especially residential) as possible to either rent or flip. If you find yourself in a multiple offer situation on a property where other buyers are throwing cash around like a ticker tape parade, don't buy the property.
There are more foreclosures coming; the shadow inventory is huge. Don't let your emotions hijack your wallet in a bidding war for anything at any time. If you can't sell the property you intend to buy for $X within a week of purchase and get what you paid, you're probably going to pay too much.
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
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