it or not; how we buy and sell houses says a lot about human
nature. We all like to be seen as individuals, but in a lot
of ways, we are like sheep. Most of us would hate to admit
that we have a herd (flock) mentality. However, when it comes
to buying and selling houses, most of us will do what everyone
(well nearly everyone) else does.
Anyway, back to
the supermarket. What would most of us do if the local supermarket
had a big discount sale and dramatically reduced all its grocery
prices? What would us sheep do? That's easy to answer. We
would rush in and grab some bargains! We'd buy up large -
wouldn't we? Of course we would!
The funny thing
is that when house prices, or share market prices fall - what
do most people do? The exact opposite... we do nothing! We
wait until the prices start moving up again!
When there are
a lot of real estate signs hanging on front fences - houses
take a lot longer to sell. When the news media tells us that
the real estate market is dead - real estate agents go quiet.
So when the real
estate market is depressed, instead of buying houses... most
of us do nothing. This is usually a good time to buy a house.
It is a house buyer's market!
A depressed property
market provides the opportunity to "buy low - sell high."
Yet, because of fear, most of us choose to "buy high
- sell low" or "buy high - sell high." We do
the opposite to what we would do in the supermarket.
So, here are the
questions: Should you sell your house when the real estate
market is depressed or booming? Should you buy a house when
the market is flat or rising? Well, I guess it depends on
your own circumstances. You have to decide what's best for
you. You now know what most people will do - so it's over
to you whether you join the herd or not.
I will say this;
for a first homebuyer, or an investor - usually the best time
to buy real estate is when the market is depressed. Do some
research, overcome any fears and "buy low - sell high."
more information on how to sell your own home for sale by
Peebles, Market Leaders ebooks.