IS IT WRONG TO BUY IN A SELLER’S MARKET?
No. Provided that you buy the right property, at the right price, and you commit to holding it for 3+ years. The right property is one which the majority of buyers deem highly desirable in a normal marketplace, i.e., a blue chip regardless of market conditions. The wrong property is one which sells quickly only in a depleted marketplace…such as a property with no views or excessive road noise (and yes, that has been happening. Yet not with any clients-o-mine). The right price is one which is just enough to win the property from the others vying for it and it has a ‘break even’ in the very near future. The wrong price is one which is ten percent above today’s appraisal.
Selling property in a seller’s market may seem easy to do but it is also quite easy to screw up. There are many fine examples of that right now in the Vail Valley. (Sorry, I cannot specify which ones those are because each one is attached to a broker’s name). Simply put, to sell right, all of the standard, diligent, evaluations and procedures must be wisely implemented and only then you will you best capitalize on the market efficiently. Also, in this marketplace, a seller must be well informed about who the buyer is. Ultimately, sticking a for sale sign in the ground with a dreamy number on it doesn’t work.
Will the inventory increase enough this spring to lessen the competition? Must you skip breakfast and run to store early for the rest of the year? Well, I should never tackle such unknowns, but I will: ‘no’ and ‘yes’.
No, I do not think supply & demand will balance out this summer. I believe the inventory will increase but it will not increase at the typical, seasonal rate and the market will remain competitive. Yes, being prepared, watching the store shelves constantly, and even wandering into the loading dock early morning to snoop around is the key to success. And that is what I do. But I won't skip breakfast. It's is my favorite meal of the day.