On a recent episode of the HGTV show “Selling New York,” a hard working Realtor shows the billionth property to his buyer client.
The client’s reluctance to buy any of the perfectly acceptable condominiums shown to him is not because the properties are in the wrong neighborhood or lack the desired features, but rather that the buyer, “doesn’t want to find out six months from now that he paid 10-15% too much.”
Now how is he going to know that? As I have said many times and pundits agree, you can’t time the market. Just like the stock market, you can only see the bottom in hindsight.
I sympathize with the client’s desire not to overpay, but if he wants a home now, he should (with his agent’s expert advice and the available market information) make an appropriate bid on a property now. If he wants to see where the market is in six months, then he should call his agent in six months.
I like to think that I would have educated my client a bit better than this agent (or cheerfully tossed the annoying client off a balcony), but the agent stuck with it and eventually made a sale.
Do you think the new homeowner will evaluate his investment in six months, or do you think he and his wife will be too busy enjoying their life in Manhattan?