Like this:

“When everyone is buying, you should be a seller.  When everyone is selling, it is time to buy.”

Real estate in Steamboat is experiencing a correction that is almost universally advantageous for buyers.   Whether it is an “L” shaped extended dip or the new normal, property is now much more affordable.   Interest rates are wonderfully low and incentives to purchase combine to create an ideal time to buy.

Market value boils down to what the buyer will pay and what the seller will accept but the other element is what the appraiser says the property is worth.  In a descending market, appraisals often come in higher than market value.  This can occasionally work in the seller’s favor when he is trying to capture more equity, but mostly it is a re-assurance to buyers and their lenders.

One area that is much to be debated is speculative property purchases.  This business practice spawned spiking property values but enormous profits for the investors who were able to withdraw before the down-turn.  Currently, many real estate observers say that “spec” buying is dead-in-the-water now and for the foreseeable future.  Other adventurous investors insist that if a quality property has broad market appeal (demand) and is somewhat rare in terms of supply – this property will see equity growth and profit to the speculator.

Navigating the world of real estate financing and mortgages now can be especially trying.  Subsequently some of the biggest bargain closings we have seen are cash deals.  Now that the sloppy, easy lending era has past, cash is once again king.