Why Buy Now? Waiting Yields One Result — A Lost Opportunity

When the market was too hot, there was too much competition with multiple buyers chasing too few properties, so some prospective buyers choose to sit it out and wait for the market to change.

Today offers the best selection of properties in years, sellers are willing to negotiate, buyers have real power, interest rates remain favorable, yet some prospective buyers think prices may go lower in the Spring, so they choose to sit it out and wait for the market to change.

There may be more properties listed for sale next Spring and prices might be higher, equal to what they are now or perhaps lower, but interest rates also might be higher, wiping out any advantage for buyers, some of whom most likely will still choose to sit it out and wait for the market to change.

Good things may come to those who wait, yet when it comes to real estate, waiting typically means only one thing - a lost opportunity.

Making the decision to buy a home takes courage and conviction even during the best of times, yet dozens of members of the Southland Regional Association of Realtors who participated in a member survey agreed that opportunities abound, even now as the direction of the residential real estate market seems somewhat uncertain.

"The definition of profit is reward for risk," said Ira Bland of Century 21 Crest. "The buyer needs to be bold enough to take the risk."

Yet, many prospective home buyers continue to choose to sit it out and wait for the market to change.
"Waiting is always and option," Bland said. "But if a buyer can find the perfect house, buy it."

By finding the opportunity that exists in any market, buyers trade a rent payment for a mortgage and begin the pleasures of home ownership while enjoying the tax benefits that ownership offers.

"If you are renting, it is a no brainer - buy now," said Barbara E. Dickens, Rodeo Realty-Studio City. "With so many financing options available today, the mortgage payment could be equal to or lower than your rent. There is nothing like owning your own home."

Like home prices, rents rise over time, yet "many renters take a wait-and-see attitude and wind up being priced out of a home," said Irene Easter, of White House Properties.

"What you can afford now you may not be able to afford in the Spring," said Nancy Board, of Pinnacle Estate Properties. Even if prices fall slightly, changes in interest rates or tighter financing options may offset any price advantage gained by waiting.
Additionally, "in waiting, buyers become speculators with regard to their future and their family's future," said Mario Acosta, Prudential California Realtor-John Aaroe Division. "Go with what you know today and don't fall into the trap of trying to predict the future."

Many Realtors agreed with Michael Trust, of Michael Trust Realty, that trying to time the market rarely works.
Even if interest rates drop lower in the Spring, he said, it will attract more buyers which means sellers will be somewhat less willing to negotiate.

"My advice to buyers, as always," said Sam Bolog, Century 21 Exclusive Realtors, "is to purchase when they are emotionally and financially ready, regardless of market conditions, and start enjoying and making memories in their home."
Adrian Suarez, of Lance Realty, agreed: "Buy now if you need a place to live."

"I feel the market is great right now," said Leilani Barsony, of Dilbeck Realtors, Studio City. "Great inventory, low rates and sellers are making concessions. Why wait for an uncertain market when the perfect one is now."

Too many buyers focus solely on the price, yet creative options abound that may yield greater benefit, especially now that sellers are flexible and willing to negotiate. It's easy to concentrate on price reductions and somewhat typical to ask for assistance with closing costs, said Ira Bland, Century 21 Crest. But don't stop there.

For example, "if a condo or townhouse is being purchased," Bland said, "consider asking the seller to pay one year's home owner association dues."

That may yield great benefit than waiting for or negotiating a steeper price reduction. The money that would have gone to HOA dues would then be available for other uses, such as home improvements.

Some buyers and sellers wait to take a break during the holidays, said Lou Woolf, of Coldwell Banker Realtors. Yet savvy investors and smart buyers understand that the November to January off season may be the perfect time to get active.
"Having your home listed around the holidays may result in it being the best property available to buyers," Woolf said. Having fewer competitors could "very well work in your favor."

"Spring is traditionally the busy season," said Vicki Popielinski, Rodeo Realty. However, as a result, "it is much harder to get a bargain during the peak selling season."

Investors also take advantage of seasonal cycles to prepare for the next busy phase. Some investors jump into a market as it slows down so that they can capture current price opportunities, prep the property and have it ready to go during the next busy cycle.

"A buyer looking to ‘turn' a property should be doing more during the traditionally slow season - November through January," said Kimberly Cizek, Keller Williams Thousand Oaks. "The slow season is the best time to do construction on an investment property so that it's on the market by March, which is when many families move."

The fact that home ownership has been a dependable investment over the decades supports one conclusion - almost anytime is a good time to buy and that waiting for the perfect market rarely works.

By DAVID R. WALKER, Southland Regional Association of Realtors®