The financial press generally defines a "good" market as a seller's market, when buyers are bringing in offers within a week of a property going up for sale. A "bad" market, therefore, is a buyer's market, when sales are slow and home prices stop appreciating at a rapid rate (if at all).



But what's so bad−if you're an alert buyer−about a "bad" market? Let's say market conditions have trimmed 10% off of your market value. That's not much on the stock market, but it's a great deal in real estate. It rarely happens. So your $500,000 home is now worth $450,000. We'll say that you go on the market right at the lower asking price and sell fairly quickly.



We'll say further that you find a wonderful home−formerly $600,000, but now reduced by market forces to $540,000−and you buy. We'll say you come in with a 10% down payment, which is $54,000 instead of $60,000. Your mortgage is smaller than it would have been. Even your property taxes are most likely lower.



This is a simplified, generalized example, of course. A "bad" market often offers up bargains to those who look carefully−even better transactions than the one outlined here. The moral of this story is easy: In a "bad" market, it's time to look for a very good deal, indeed. For assistance call Beth at 425-450-5208.