The Bubble is Bursting!! I Will Wait Until The Market Gets Better

Are you wondering when is the best time to buy or sell?

Are you somebody who is ‘’waiting for the market to get better’’ to buy or sell your home? Are you a buyer waiting for the interest rates and the home values to go down…? If your answer is YES! This blog is for you.


I cannot count how many times I’ve encountered clients who have had the mindset that they will wait for ‘’the market to get better’’. 


In some instances, yes! It might be wiser for you to wait to buy or sell and I have actually talked my clients out of buying or selling. Note that these clients had very specific needs while we were going through the current market and adapting to it.


I know that might sound confusing… Let me explain:


Example Number 1


Talking My Client Out of Selling: Why would I do that!? I love helping my clients buy or sell homes. That’s what I do. On the other hand, one of my core values as an agent is that I must ALWAYS act in your best interest, even if that means no deal for me.


A client purchased a home in January 2022 during the bidding wars and the frenzy, boiling HOT sellers market with a historic low 2.8% interest rate. I was able to get my client's offer accepted 5 days after the home went on the market for an incredible deal $15,000 under the appraised value when most buyers were overpaying above market value. 


Towards the end of 2022, he contacted me to let me know that he was considering selling his home and buying somewhere in Oakland. I explained to him the current market letting him know how insanely the market had changed since he purchased his first home. The current interest rates had nearly doubled and were sitting at 5.28%. If he decided to sell his house and move somewhere in Oakland, he wouldn’t be able to get what he paid for as a result of the current interest rates. He would also be paying a significantly higher interest rate on his new mortgage. 


Instead of selling, I advised him that he could wait 2 years to buy his second home and keep his first home as investment property. That’s exactly what we are going to do. 


Example Number 2


I Told My Client to Not Buy…Yet: During the insane 2022 market shift going from sellers to buyers market, I advised him to wait a little longer or at least be very patient to make sure that I could find the BEST deal on the market... And that’s exactly what we did. Fortunately, the wait wasn’t long, but I was willing to wait for as long as we needed to because home values were dropping while interest rates were increasing. I was able to get my client's offer accepted for $95,000 under the appraised value. The latest comps in that price range had sold only 3-4 months ago. I am friends with my clients on social media and they often post pictures delighted with their new home. 


In conclusion, everyone has different circumstances and different needs. The Bay Area Real Estate Market has been and will probably always be one the world’s most competitive markets. The best that we can do as buyers and sellers is our due diligence to set our expectations right and create a plan tailored to your needs that will bring you the most success under the current market conditions.


You’ll never have anything to worry about because you’ll always have me in your corner.


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