Home Buying in Wisconsin>Question Details

Mary Clements, Real Estate Pro in Siren, WI

How do you convince buyers that NOW is a good time to invest in property vs. the stock market.

Asked by Mary Clements, Siren, WI Tue Jan 27, 2009

Help the community by answering this question:


You don't have to convince anybody, just work with the buyers that are out there.
1 vote Thank Flag Link Sun Feb 8, 2009
I agree with the previous 3 answers, and I'll ask a variation of that question: What will it take to wake up many realtors, who keep ignoring us investors, that the buyers ARE out there?

The problem--as I see it--is not a lack of buyers. I'm shopping around, and I know (or know of) plenty of others who are also shopping around. The problem is many sellers are delusional right now. Unfortunately, many of them purchased at market-value when prices were much higher, and now the market-value for many homes is considerably less. If the sellers won't sell their homes at market-value (assuming their properties are fully market-ready), then their properties will continue to sit on the market until one of the following will happen: 1) the sellers start marketing their homes at realistic prices, 2) the sellers will wait for the market-value of homes to increase to the point where they can sell their homes for their ideal price (which is highly unlikely in the near term), and 3) the sellers lose their homes.

Most pills taste horribly bitter to me; however, the healing won't begin until after I've swallowed my bitter pills. Similarly, any sellers who need/want to sell now will need to swallow the bitter pill of selling their homes at or below today's market-value, and the longer they hold out the more the financial gangrene will set in.
1 vote Thank Flag Link Sun Feb 8, 2009
Lynn's answer is right on,there are a lot more things to consider. After all the questions are answered and the buyer feels it is a "toss-up" the deciding factor to me is... Given all things equal (if both investments create the same return) you buy stock with money out of your pocket - you buy real estate with money from the rental income. If it is a personal home - there are tax advantages in owning real estate you may not have with the stock investment
0 votes Thank Flag Link Sun Feb 8, 2009
It depends on their short / long term goals desire own real estate. Is the real estate purchase an investment property or home ownership. Does buyer want to be a landlord deal with headaches of tenants. Defining the pros and cons tax benefits, OR divide the cash made available diversify real estate, stocks which many investors do. Hope it assists.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Tue Jan 27, 2009
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