Why we usually fail to buy that property we say we wanted to buy.
Good question, right? Who can answer?
“When will property prices be falling?” Briefly, for those who are waiting to buy a property for 20, 30 or 40% below the market, they will have to wait longer. Unless the property they want to buy is the one NO ONE WANTS to buy lah. For those, these days there are already a lot in the auction market, secondary market and even heavy discounts from developers. Do not ask me where, call any of your real estate agent friends to ask yeah.
A question for ourselves under current market condition
Perhaps we could ask ourselves this question. If we could still pay for the home, would we do fire-sale for the home or not… So, the first reason why we may fail to buy that property we wanted is because unless these owners become desperate, they are not going to sell their properties at 20% below the market…or higher.
If we want to buy properties which are priced 20% below the market, we need to wish for many of these owners to go into desperation mode. Are you wishing for this condition in your prayers? Hopefully not.
Second question, are we close to these desperate sellers?
Second reason? We assume that there are a number of these owners who are really in trouble and wants to sell their properties by 20% below the market value. If the person happened to be a your close family member, they may tell you FIRST. So, you get to buy that property at 20% below market price.
However think about it, how many of these desperate sellers are your close family members? So, if they are not your close family members, they will sell to THEIR close family members… or their neighbours… or even that real estate negotiator who’s also a property investor too. Certainly not to to you… because they do not know you.
Third Question, how many of these are in the market anyway?
There are just not enough of these below the market properties to go around yeah. You see, in some areas, the prices could already be 20% below the market but not many buyers. In popular areas however, as soon as there are a few of these 20% below market price properties pop up, there would certainly be a long line of potential buyers.
One of my close friend, a Gen-Y saw a new property listing at the condo she was staying within a few minutes the listing was posted online. She was in my car and I was driving her out for lunch. The listing she saw was 10-15% below the market price. She called and took a two hour time off to view and immediately pay the deposit for it! So, how many of us watch the property listings every other minute…? Plus we can decide to buy that property almost immediately?
Fourth question, are we already in the game to buy that property or not?
There are a lot more reasons but perhaps a better waiting game is also by befriending many good real estate negotiators who may tell you about such a good deal first before they tell others?
It’s also vital that you have already understood the area you intend to buy and the market price yeah. As soon as an opportunity comes along and you want to think about it, someone may have bought it first.
There is no time to investigate and research because when the property is truly attractively priced, the window to buy is really a small one.
This is why we need to stop thinking that we can wait and wait and wait because someone told us that it is currently the buyers’ market.
Happy understanding and I do wish you could get that unit at the area you want at the price you truly wanted okay. Cheers.
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