Blog » A Ladera Ranch House for Sale can also have a Market Timing Effect

A Ladera Ranch House for Sale can also have a Market Timing Effect

If it seems like time to change neighborhoods or find a home with more room for your family, or less as the case may be, then perhaps the time has come for searching through the real estate listings to find that perfect Ladera Ranch house for sale. You might also ask yourself if right now is the best time for a new home search since gradually rising prices are the norm these days. One way to get a handle on this particular question is asking what real estate investors are doing and thinking about the subject.

There are generally two main categories of people who are looking to buy a Ladera Ranch house for sale, but not to live in. The first category involves investors who subscribe to the buy low and sell high investment theory. Their investment viewpoint does succeed in making good sense and it should really since it’s been in existence since prior to the paving of Wall Street. The logic of this theory just can’t be argued with. Way back when the prices of real estate hit rock bottom, these investors surveyed the current median housing prices, took note of the giant drop and began to look for the nearest homes for sale so that they could snap them up post haste. They were assuming that eventually prices would rise again since that is, in fact, always how it happens.

The only problem for all those shrewd investors was the competition that started showing up unexpectedly. Huge investor conglomerates began to show up in search of bargain priced houses. The resulting issue was a bidding war of sorts. All of those investors who wanted to buy low would locate a Ladera Ranch house for sale at an excellent price, but then found themselves competing against institutional investors that were bidding with budgets, which were absolutely unlimited, backing them up. This resulted in plenty of sales that were all-cash, but those sales ended up being made just a bit higher than they would have if only the local investors populated the market.

That brings us to the second investor category who are just not that impressed by the buying low and selling high theory. They feel that it’s an acceptable concept; however they simply choose to ignore that entire pricing roller coaster spectacle because there really is no possible way of knowing when real estate has reached its absolute low or its peak high for that matter. They simply adhere to the philosophy that they just locate a valuable Ladera Ranch house for sale when they have the appropriate amount of money for investing, buying it at a fair price according to the currents comps and then holding onto it. These investors are confident in the market’s rising and falling and feel that, in the long run, any high-quality home will be appreciating in value. We call this group the investors that just buy and hold.

The majority of us, who may be considering a Ladera Ranch house for sale, are mainly interested in living in it, not just investing in it for re-sale. However, we generally never offer more money than the home’s current market value. This is, of course, because we have no desire to lose money in the event of a re-sale. Mostly though, we are planning on living there long enough that any loss would seem improbable. So, basically that would make us fall into the second category of investors.

Does that mean that it’s a smart move right now to be searching for a Ladera Ranch house for sale in spite of the fact that prices have been going up? Well, for the folks in the first category, the fact is that taking inflation into account, home prices haven’t even risen that high. If you’re a proponent of buying and holding, it’s always a good time for buying a top-quality house at a fair price and that goes double for when the rates for mortgages are so low. So, not only is now a great time to look for houses in Orange County, but it’s also an excellent time for giving me a call!

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