“So Darren, When Do You Think We’ll See the Bottom?”

I’ve been thinking lately that if I received a dime every time I have been asked this question, I’d be able to finance the bailout of the Big 3.  Of course, I wouldn’t unless I was given the keys to Rick Wagoner’s G5 and the labor unions were busted up, however, I grew up in a non-union state, with non-union parents in a non-union house and have strong opinions about things.  But I digress…

I’ll paint you a picture:  market movement in volatile times resembles a giant V and not a U or an O or a…sorry.  Anyway, the point being that the bottom looks like the point of the V and lasts but an instant in time.  You fence-sitters out there that are trying to time the bottom perfectly are already suffering from analysis paralysis and will come in too late, deciding to make your move once you’ve seen the bottom, which probably occurred three weeks prior.  Buying when the market is on the way down or on the way up is really the way to realize gain in your investment, whether it’s a stock purchase, a real estate purchase, pork bellies, whatever.  Movement in a market is a good thing; stagnation the killer.

Upon hearing the question and not receiving payment in the form of a dime, I’ve been encouraging would-be buyers (and you know who you are) to rather than wait for others to determine the bottom, create one of your own.  With real estate inventories at their current (very high) levels it is the buyer that right now holds all of the cards.   Make an offer you’re comfortable with.  Make several.  And don’t worry about offending anyone.  It’s a little-known fact that if a seller learns you like their home but are considering making or have made offers simultaneously to other sellers, the level of cooperation you’ll receive has a better-than-average chance of increasing.  Competition is good, despite what youth sports organizations in New England would have you believe.

Right now, markets across the country are lethargic at best for many reasons.  In addition to the above-described indecision, fear and uncertainty have people seemingly unwilling to make their move.  I know that financing has been a challenge to receive, although I just closed a transaction on Thursday with a self-employed couple with good assets and 20% down where financing was approved in less than 7 days.  It’s out there, my friends.  You just have to look a little harder to find it.  And pray that the banks continue to free up credit and use whatever portion of the $700B they were given for what it was intended.