Has the Market Bottomed Out?

The Crystal Ball Says ...

Buy Low, Sell High We have been taught this for years, and business people like Donald Trump, Warren Buffet and others have become masters at speculation.

How much lower will home prices go before the recovery begins? There is no magic formula, scientific equation, or even a good way of guessing when the market will begin it's upswing.

Please understand this one thing ... There is no Crystal Ball. As a matter of fact, since there is no crystal ball there is absolutely no way of speculating that we are at the bottom or not. This means that when the media announces things like "we are not at the bottom" or "we have another year of this," please understand that there is no way of knowing this.

Here is what we all must realize. We must realize that there is only one way to know that it was the bottom. That way is simply by "missing it" or when it is now behind us.

Let me state a simple fact. When America believes we are at the bottom, we will at that very moment be at the bottom. Because when America believes we are at the bottom and this is the best deal they will receive, they will act. Actions create demand and demand will create an uptrun in the industry.

As long as we pay closer attention to the media than we do our own common sense, we will not be at the bottom. The media preaches that we are not at the bottom and when we listen, we confirm that. We keep waiting, and that keeps the perpetuation of the downturn in motion.

I recently heard of a Real Estate Office that had a big sign outside on its front window that simply said "Smart People Are Buying Real Estate Now." That pretty much says it all.

Here is a great question for any potential buyer out there. Would you rather buy now and have prices go down another 5% before beginning to recover or wait and buy when you have missed the bottom and prices are already on their way back up?

We must understand that the moment we feel we are at the bottom, we will be. When investors think the best deals are now, they will be. However, when we listen to those who keep stating that we are not there yet and believe them, we will make them right.

Action fixes everything. So, if you are a buyer who still feels like the market has lower to go, tell your realtor how much lower you think it will go and then have him "Write An Offer" using that number. Don't wait another minute. Action creates demand and demand creates the upturn we are all waiting for. It will not be magic, but it will be action that begins the recovery.

Take action before the end of this day!

(A special thanks to Dennis Volz, State Farm agent extraordinaire, for this article!)