To Buy or Not to Buy?

      Now that we’ve seen the real estate market shift by varying degrees in different neighborhoods throughout the Bay Area, is it still hip to flip…real estate?  Or, to buy or not to buy?     “Flipping” a home in the conventional sense means to purchase an undervalued property, and then refurbish and resell it to turn a profit.  Obviously there are certain parts of our country where those real estate markets have been devastated by the downturn of their local markets along with the mortgage industry’s “melt-down.” With the degree of risks involved, you’d think this would dissuade most rational people from attempting to purchase a property in a down market.  Or, should it?      Each situation, property, and market is unique unto itself.  For the first time in a while buyers are starting to see opportunities that didn’t exist before.  If you’re a buyer with good credit, the ability to put down a down payment, and have some reserves (savings, investments, ect.), you might just find yourself in the driver’s seat in today’s real estate market.  Inventory is up, sales are down, and some buyers are now realizing the advantages and opportunities.     Now more than ever, buyers and sellers need to understand their marketplace  Hopefully, they’ve associated  themselves with a reputable realtor that understands that changes are taking place almost daily.  Working with an experienced realtor that will tell you what you need to hear, not what you’d like to hear, is critical.      The last two times the real estate market fell off in the Bay Area was after the 1989 Loma Preita Earthquake and after the horrific event on September 11th in New York City.  Understandably people were very concerned ,and very cautious, about buying and selling at that time.  Curiously though, quite a few homes sold after those events in the Bay Area, and a year or two later, proved to be some of the best buys in the last 20 years.       Is this the time to be buying real estate?  Historically, even when the market has dropped off, there are some neighborhoods within the Bay Area that seem immune to market conditions.  Occasionally a home might come up in one of these neighborhoods that just sits on the market before someone even attempts to make an offer.  And, after it sells, the neighbors are sometimes shocked when they find out what it sold for.  What I’m trying to say here is that you never know what you can do until you try.  Yes, sometimes it takes time, knowledge of the marketplace, persistence, patience, an experienced professional to guide you through the maze, and sometimes a little luck.  But, you might find out in a year or two (or more?) when market dynamics revert back to more of a seller’s market, it was a good time to buy!