If you are buying in anticipation you will never buy and do not waste your time. If you think and you may be right that the prices may fall 10 to 15% just go to the movies, to beach and enjoy your life and come back into the market when it drops. The problem is if the prices drop 10 to 15% in a few months you will be looking for a new low than and you will not buy. The seller will not sell in anticipation of the prices dropping. They are looking for a just price or highest price at this moment unless they have to sell.
Prudential California Realty
I agree with Homa! I see people trying to "time the market" everyday. In the meantime, others are getting great deals on homes. Do not lose sight of the fact that this is a "Home" notjust an "investment".
The way things are going, we will not know what the "bottom of the market" is until about 4 months after it has hit. That is about the time frame for analyis.
Remember that generally speaking, loan rates and home prices have an oppositional relationship. Meaning that is home prices are up,loan rates are usually down and vise-versa. The fact thatloan rates are low and home prices are low is truly something we don't usually see. Take advantage of it and save yourself alot of money. It would be better to pay a bit more on the price and save on 30 years worth of interest, than to worry about a couple of thousand dollars.
Eventually the market adjusts and balances. Eventually seller won't take your low offer. It might be today, maybe next quarter, maybe next year. You still need to read the "comps" and know where your particular market is heading.
Just remember though, you will not see the bottom (or top) of the curve until after it has passed and you could miss out on some great deals.
Negotiations aren't just about the PRICE!
Standard price reductions of 10s of thousands of dollars have little effect on affordability.
You may be better off asking the Seller to pay your closing costs or discounts your rate/monthly payment.
Learn how to pay $290,000 for a $400,000 property:
Before you take off whatever 10% or 15%, you should really know the prices you use are reasonable. Otherwise, that is equal to nothing. Only some of the real estate consultants I have seen, know how to legally do comps that should be called Comparable Market Analysis (CMA). And just few of them know how to legally and professionally do that. Surprised? But that is true. Most of the consultants do that as a mathmatics student. They just play with the numbers. Remember, that is comparing the market as an analysis not only the numbers on a report. Otherwise, it should be called CNR. A lot of agents exchange their clients money by their CNR not CMA. Everybody can do CNR for themselves.
Also, the goal a real estate agents fight for you, should not be the market price. The goal should be the price what you want under their professional consults.
Before ask someone to be your agent, let he/she answer the following questions what I always ask them.
What is market value, and what is market price
Give you some other nonnumber facters we have to pay attention in CMA
If he/she can not, then do not hire him/her otherwise, you may lose your interests.
We look at comps to see what story they tell.
What you pay is "market". If you're convinced that prices will drop another 10-15%, this might not be the time for you to be buying.