These are difficult times in the real estate market....most difficult for sellers who are pressed to sell their homes but also difficult for buyers who must make difficult decisions. Things that would appear to be great deals, even magnificent bargains, only a year ago, are now decisions we must ponder and weigh against what the future may hold.
These decisions are less difficult if you plan to buy a home as your primary residence, because most likely you will stay in that home two years or longer. But, if you are speculating about a purchase of distressed real estate to be "fixed up" or real estate as an investment for rental purposes, it is time to really analyze your potantial purchases. For example, I pride myself in knowing a good bargain and things have proved well over the last few years. But, the earlier "bargain" I mentioned in a blog six weeks ago, turned out to be a great deal I felt obliged to pass up. The house was a wreck, but on a great lot. That lot was in a historic district and plans would therefore need to be approved by the planning commissions of our small town.
Regardless of the bargain I saw in front of me, the risks were just too great. And, the time with which to accomplish my due diligence was just too brief. I could have beaten up myself and made everyone around me crazy over the holidays to meet our early January deadline, but I chose to retain sanity and leave my money in the stock market a but longer. The risks were unknown, and I am in the real estate investment business to make money. Asta la vista, good buy! Hello sanity!