“I am seeing so much garbage on the market,  foreclosures, tax sales, short sales, auctions, that my head is spinning.  With me not being in a hurry because of my age I can’t help but wonder [...]]]> I got an email from a confused, concerned prospective buyer today. I am quoting a little of it here.

“I am seeing so much garbage on the market,  foreclosures, tax sales, short sales, auctions, that my head is spinning.  With me not being in a hurry because of my age I can’t help but wonder what is the best avenue for me right now.  What type of buyer am I ?  I will have cash in my pocket and no financing needed.  Obviously with the deals out there, I want a deal.  So, what is my best avenue?  Is this the right time to buy? ”

Here is my response

First, how is the market? Hard to say, yet seems like a little more buyer activity. Prices are low but seem to be stabilizing.

What to do? As far as the future goes, I can only quote one economist and the most successful investor the U.S. has ever known. The economist, John Kenneth Galbraith said, ” economic forecasting exists to give astrology a good name” In other words, who knows. The investor is Warren Buffet. When asked about timing the market his recommendation was to find an investment with good fundamental value, and hold it. Even though the housing prices have dropped, almost all of the value lost was from the inflated run-up of 2004-2005. In other words “funny money” that is a real thing to the people who bought during that time period, but real values from earlier have not been lost.

Short sales might be an option for you, since you are in no hurry, but you will need to be flexible regarding model of home you want, there may not be the model you want on the market offered short. Likewise foreclosures. Both of these types of sales offer good values, but may require fix-up work. Traditional listings may also offer bargains. I just closed on a home like you want at $98K. The value is at least $110K, but the heirs were ready to close out the estate and the other agent was able to keep negotiations open.

We are also seeing investors in the market again, buying at today’s prices and holding for rental and future appreciation. All are operating on the proven principle that you make money when you buy, but realize it when you sell. Cash puts you in the strongest position possible.

What kind of buyer are you? The lucky kind, you have both cash and a value laden market with the time to exploit it.

Jim Little, Your Sun City Neighborhood REALTOR®

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