How Low Should You Go?

Most people don’t want to buy in the low. They want to sharp shoot for the bottom. But let’s face it. If you can predict the market’s bottom and buy at the perfect time, you’re either clairvoyant or have impeccable timing. In all the years I’ve owned different businesses, I haven’t met too many people who can honestly claim either.
Witness what’s gone on over the last eight months with the stock market. Some estimates say the average American has lost between 27 percent and 32 percent of their savings and wealth. Some have lost more, and some have lost less. The point is obvious: Even the smartest of investors weren’t able to use market timing as a sound investment strategy.
That’s why I think it’s prudent to buy in the low. I’m not just talking about real estate either. It could be stocks, business positions or retail goods. But let’s use real estate as an example. If you think home prices in a particular neighborhood are at rock bottom or near the bottom and you’re in a position to buy, then by all means pull the trigger. Sure, home prices could go lower, but they could also rise. Very rarely can you sharp shoot for the bottom and hit it just right. By the time it’s public knowledge that we’ve all hit bottom, it’s already too late and prices are rebounding.
Just use common knowledge and good resources when evaluating neighborhoods and home prices. Most people can tell when a particular home is a good deal. Rarely do I run up against buyers these days that haven’t done their homework. In most cases they can rattle off the price per square foot in three different neighborhoods, and they know exactly what they should be able to get for their money.
April to July is the prime selling season in Colorado, and it’s a perfect opportunity to capitalize on some great “in the low” properties. If you’ve got the means, get out there and look around. Quit worrying that we may not have hit bottom.