There are many complexities that are involved in the real estate market, which can affect both buyers and sellers, but right now we’ll focus on the Buyer.

   I like to compare the real estate market to a clay ball.  We don’t know what the artist will make out of it.  We can only see what it is now.  No one can really accurately predict it’s future.  I’ve seen both savvy investors and homeowners make and lose equity in short periods of time. 

  One mistake that buyers often make is waiting too long.  While the buyer is waiting for the “bottom” to drop out, the real estate market makes a quick upswing and the needle swings from the buyer to the seller. Inventory drops, prices go up, and now the buyer either can’t qualify for the higher cost of the home, or is frustrated because the wide selection that was there a few months ago, has now vanished into thin air.

  Another mistake buyers and sellers make is to listen to the media. It should be taken with a grain of salt.  Most media reports reflect the nation as a whole and not the individual area or neighborhoods. For example, while I was working in Southern California, the media was reporting that the real estate bubble was soon going to burst.  Well, it took two and a half years for that bubble to burst.  Meanwhile my sellers were in a panic thinking that their homes would now be unsellable.  Most of my listings still sold within two or three weeks. Grain of salt.

  My smart buyers will often call me and ask what the current market is doing.  Having well over 100 realtors in my office, it’s easy for me to relate what’s been happening.