I Want to Buy my Home at the Bottom. Me too!
When we get to the bottom of the market, will somebody 
please ring a bell.
One has to be very lucky to purchase a good suitable home at the bottom or sell at the top. These pricing peaks and valleys usually come to light after they have moved considerably from their respective highs or lows.
If purchasing at the absolute lowest price is your main concern and you are flexible with location, price and condition, you should focus on foreclosures and/or short sales.
On the other hand if purchasing a home that best fits your family needs (location, condition, floor plan, school district etc.) is of importance, an effective strategy might be to determine if you are in the “ballpark” of reaching a pricing bottom and this bottom will hit and rebound all within your time frame of owning.
For instance, lets say you feel that you will be in your next home for 5 years and the market price drops a bit in year one of owning from where you entered. Do you feel it will recover back to your entry point within the next 4 years? If that seems reasonable, then it should really not matter if you purchased at the bottom or not.
Not only that, you will have most likely selected a home that will fill most or your requirements as the selection was at its peak. You will have enjoyed 5 years of living in a comfortable home, making lasting memories without the worry of having to time the market and perhaps settling for something less than you would have had to.
What value do you put in that?
Don’t forget that you may have also benefited from tax incentives from owning during those 5 years AND will have built equity in your home through principal reduction payments.
So the question home buyers should be asking themselves is;
1. Have we reached the bottom of the real estate market and if not, will it come and go during my time of ownership?
If you feel the answer is “yes” to this question, then…..
2. Is it worth the risk and aggravation of trying to determine the exact bottom?
If the answer is “no” then…
You have permission to buy!
Edward (Eddie) Perez
Tags: Bottom of Real Estate Market, eddie perez, Hoboken Real Estate, Pricing Peaks and Valleys
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