How to Get a Good Deal in Rising or Falling Markets
There are good and bad times of the year to buy, and there are good markets and bad markets. How to avoid traps and make good money from both worlds?
#1 Buy and sell at the peak times of the year. Buy in the winter months, and then sell in the spring and early summer to maximize your profit.
#2 If you can, probably the best time of the year to buy your home is in December, preferably during the last two weeks of the month when everyone is fussing about the holidays.
#3 Try to avoid buying in late spring and early summer, specifically the months of April, May, and June. Historically, 30 to 40 percent of all homes (new and resales) will be sold during those three months. They are the peak selling times.
#4 To find out how quickly homes are selling and what the current inventory is your area, check with your local real estate board. Contact any member agent who should be able to readily get the information for you. Or you can simply call them—their number is in the phone book under “Board of Realtors®”.
#5 If you buy when prices are going down, a buyer’s market, you may initially think you’re getting a great deal. However, later on you may find you can’t sell for what you paid. You may discover that after commission and closing costs, it will cost money out of pocket to sell!
#6 Don’t get “upside down”. This is real estate jargon that means that it will cost you more to sell your house (after paying off your mortgage, closing costs, and commission) than your house is worth.
#7 Before you commit to a home purchase, ask yourself again if renting, at least temporarily, doesn’t make more sense given market conditions? Only buy when buying makes more sense than renting.
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