The Secret #1 Rule of Real Estate

For as far back as people remember, the number one rule of real estate was always “location, location, location.”  That rule is a given and still applies. Based on the transactions and experiences I have had in real estate, there is a secret rule that is little known, a sleeper if you will.  Here is the secret rule of real estate:

The market waits for no one.

What does this mean?  Here is the gist of it:

1. You think you have all the time in the world. Interested in a property? You need to act quickly because the seller’s goal is to sell to any qualified buyer, not necessarily you.
2. Locations can change for the better. Many times I have had clients not want to buy in an area and say “Rick, it’s all about the location!” Well, a few years later, those areas they didn’t want to buy are now some of the hottest neighborhoods!  This is because the areas they wanted to be in are getting too expensive; therefore buyers are going to the next neighborhood.
3. Dragging your feet will cost you money. Because the market isn’t dependent on just one person, some buyers have lost thousands of dollars in a matter of a few years.  Not only is this because as values go up, so will higher down payments, but also money lost in rent that you have to pay over that time.
4. Even if the market takes a downward turn, that doesn’t mean you are in the clear. Because the market waits for no one, if prices go down and you don’t act, in some cases homes can and most likely will go to those lucky buyers who bite first.

The best move you can make is to literally make the move.  The sooner you can get into a home or buy an investment property the better because real estate is a long term investment.  And, as you saw in my previous article, Owning versus Renting: It’s Easy Math, over the long run values tend to increase.