The Pros and Cons to the “Wait and See” Approach to Buying in Today’s Market

Let’s get right down to it and get real: it’s an uncertain time in the real estate market.  Our economy is heading into a recession, by all accounts, and interest rates are climbing.  Lots of my buyer clients have expressed a desire to hit the pause button on their home search and just wait and see what happens with the market.  Today, I want to take a close look at the “Wait and See” strategy for buying a home in Southern Georgian Bay and see if it really makes sense. While I believe that the best time to buy is when a buyer is ready, I also caution my buyers not to move like the masses: not many people know this but that famous Robert Frost poem about taking the road less traveled?  That was about investing in Real Estate.  Just joking!  Let’s go through the issues and see if they hold water:

The “What If”s

My Buyers often wonder if there’s the possibility of buying a home at a lower price if they wait, or with a lower interest rate.  There’s always the chance that we aren’t at the bottom of the dip, or that interest rates will go down if you hold off buying.   To this I say, what if home prices remain the same over the next year, what if interest rates remain relatively the same or even increase over the year.  The problem with waiting to see, if you may wait and see your best opportunity lay behind you.

Just a little more time!

Pro: If you wait to buy, you have more time to save for a better down payment. My take on it: With the very real deals that currently exist in the market, buyers are poised to save (depending on the price point of their purchase) tens, even hundreds, of thousands off the list price, which means less down payment required.  I’d also point out that, we’re currently seeing little buyer competition, so-long multiples and bidding above the list price!  You are in the driver’s seat to negotiate on price and include conditions like home inspections and financing – important buyer protection that we just weren’t seeing back when houses were going in multiple offer situations.  To add onto this, we are in a new market than early 2022 where conditions were being waived to enhance offers and entice sellers.  Now, buyers are in a position to include the conditions they need to protect themselves and do their due diligence before the deal firms up: home inspections and financing to name a few.

Have Your Cake and Eat it Too

If you need to sell your home to purchase a new one, the benefit of waiting to buy is not having to list your current home in a down market. So you want to have your cake and eat it too, huh?  You want to buy a house in a dip, and sell at the top!  I don’t blame you, who wouldn’t want to win that Real Estate lottery?  But like the lottery, that might not be the best financial plan!  Timing the market isn’t impossible but it is not as good a strategy as Time IN the market – meaning instead of stressing over hitting the dip to buy or waiting for the housing market to go back up and try to hit the peak while selling, you focus on finding the house that’s perfect for you and ensuring its an investment that you will hold for 5 years or more. I hope this was food for thought and if you want more, you can always reach out to me on Instagram @emilydeane_realestate or through email edeane@bosleyrealestate.com  

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