How To: Analyze a “Below-Market” Deal

I personally believe that a reasonable analysis of the local economic fundamentals points to another ten to fifteen percent decline in Seattle-area home prices. However, I also believe that barring a major economic catastrophe that slashes wages and dramatically increases unemployment, buying in today’s market can be a good move if you can find a home at the right price.

Homebuyers in the market today have the ability to minimize downside risk in a way that has not been possible since the bubble buying frenzy begain around 2003. While everyone relaxes and the housing market pauses over the Christmas / New Year holiday break, I thought it would be nice to spend a little time going over a few strategies that will help you keep a cool head if you’re thinking about buying in 2011.

Here are the subjects I’ll be covering this week and next:

  • Comparable Sales
  • Nearby Rents
  • Historic Pricing

I’m also open to suggestions of additional ways of analyzing value, so if you’ve got any topics you’d like me to cover in this series, drop a line in the comments.

The first post will go live at noon today. Enjoy!

How To: Analyze a “Below-Market” Deal

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About The Tim

Tim Ellis is the founder of Seattle Bubble. His background in engineering and computer / internet technology, a fondness of data-based analysis of problems, and an addiction to spreadsheets all influence his perspective on the Seattle-area real estate market. Tim also hosts the weekly improv comedy sci-fi podcast Dispatches from the Multiverse.