There are some uncanny similarities between the actions and tactics of people playing the stock market and Some Home Buyers and Sellers.
These folks think about buying a house a LONG time before deciding to take action . . . mostly because they come into the process with preconceived ideas as to values and getting the most for their hard-earned dollars.
These “Shoppers” are waiting for the market to come to them, and they are often prone towards calling their Local REALTOR every month or so to check in on the temperature of the market.
Are values Rising, Flat, or Falling?
What’s the Mortgage environment doing?
Can I get financed without having to pawn my first born child?
How will I know when the right time comes for me to buy and/or sell?
If it’s all about price, the buyer and seller are doing what we might call “Timing the market” . . . It’s a game in which the WINNER Buys LOW and Sells HIGH.
Every Buyer has her own risk tolerance . . . In a rising market, at what point will the values have risen enough for her to be happy with the Selling price and at the same feel like she is optimizing her Buying power?
Where’s that sweet spot and how can we capitalize on that sliver of a window of perfect opportunity?
All savvy investors know that once the market starts to move (shift) in a clear direction, it will swing QUICKLY . . . so if you’re not ready to pounce when the swing starts, you’re probably going to miss the sweet spot.
So . . . Just as stock investors listen to their Stock Brokers, these price-driven home buyers and sellers often rely on their local REALTOR to watch the market for them . . . and to raise a flag when conditions become within tolerance of the client’s predetermined financial goals.
This is essentially a limit order – (From wiki) “an order to buy – at no more than a specific price, or to sell – at no less than a specific price (called “or better” for either direction). This gives the trader (customer) control over the price at which the trade is executed; however, the order may never be executed (“filled”). Limit orders are used when the trader wishes to control price rather than certainty of execution.
Many of the “Market timing” people fail to execute . . . some lose patience and execute too early . . . or over analyze and execute too late.
The good news is that most House Buyers and Sellers have multidimensional reasons for making a move thereby tipping the scales towards the side of “certainty of execution” . . . In other words, they are buying for emotional, lifestyle reasons which trump price.
Both of these types of Buyers and sellers exist in EVERY market . . . and it’s all about risk tolerance.
Where are you on this continuum?
I and the high performing Real Estate Professionals at Pareto Realty are poised and ready to serve you wherever you are in relation to YOUR sweet spot.