The Real Estate Market - What Should You Do? The answer is: It's all relative. If you sell in a low market and then buy in the same market, you are transferring assets from one to the other. If you sell in a high market, you will also buy in the same, high market. No one can predict with complete accuracy whether the real estate market will go up or down. or how long the up or down cycle will be. If you sell your home now and you decide to wait before you buy another home thinking the market is going down, and then buy, that is a great outcome-if you are right. But if the market goes up-you lose. In general, it would be better to sell and then buy in the same market because you will know your outcome. It is also true that if you do your homework when buying, you can get a below market property and you will be immediately ahead. Historically, real estate does rise so if you hold your property long enough, you will realize a profit-but it may take time, depending on what part of the cycle you bought in. Younger buyers who remain in the market a long time will generally come out ahead, like our parents did. If you do you homework and buy a below market price house and than "flip it" (resell immediately at a profit) you will realize the greatest rate of return. This can be accomplished in this or any market. Luck plays a large part also when you buy or sell and we sometimes may have no control over circumstances. For instance, those who purchased a home a few years ago (2005-2007)may have gotten a fair-market or below market price at that time, but the market cycle has come down and most buyers have lost equity value on paper. If you were forced to sell due to economic circumstances, your net worth has diminished. If you purchased during this period and can hold on, you will make out in the long run. Some people who had purchased real estate in those years are selling at a loss, but are also buying in this market at below market prices, now. If you couldn't afford or didn't buy a house in that period, you are lucky. We may be in a down market right now compared to a few years ago. But does anyone really know if the market will go down further? Does anyone really know exactly how long this market will last? It is a gamble because no one can predict the future and you will only know if you made the right decision after the fact. So what strategy should you use? Do your homework and try to negotiate your best deal and that you can afford. You can sell your house and trade to a better deal in this or any market - it's all relative. Contributed by Maury S. Jazzetti Have a comment? Reply to mailto:info@betterlifestyles.com Website: http://www.betterlifestyles.com