Should I Buy Now?

In a radio interview I provided this morning, the host asked me if it was a good time to buy right now.

My answer is not a simple yes or no.

Yes, you can find great deals out there today.

“But shouldn’t I wait? What if prices go down even more?” clients ask me.

There are costs associated with waiting such as rent, living in areas from which you want to leave, and the stress of being in a holding pattern.

On the other hand, if you buy right away, there’s no guarantee that a home's price will stay the same.

And here’s where being an expert counts. Not only are you able to communicate this information to your buyers, you’re also armed with a home's sales history.

After 20-plus years working in Beverly Hills and its surrounding neighborhoods, I provide my clients facts. The value went up during this period, down during that one, and here’s the overall trend. This information is critical to providing superlative client service.

How Has Business Been?

November, December, and most of January were a true challenge. But with ’09 has come some good news. It’s still difficult. The sales process has stretched out much longer than in recent years, sellers are very nervous. But people are buying and selling homes, and I foresee this trend to continue throughout the year.

Next, the interviewer what asked what I thought about foreclosure properties. We all know the plus side—low price. However, there’s no such thing as a free lunch. My advice is buyer beware.

Clients should expect additional paperwork when securing a loan on a foreclosure. The bank hasn’t lived there, so it’s doing its best to protect itself.

You’ve got to make sure that you’re aware of all the home’s weaknesses. Foreclosures are most likely because an owner defaulted on a loan. She didn’t have the funds to cover the mortgage, so she certainly didn’t have the money to pay for repairs. And when you keep something in disrepair for too long, you’re really making matters worse. The result is a home that may have been neglected.

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