Surviving As Investor In A Sellers Market

[Heyward Lovett]

Hi there and HAPPY NEW YEAR!!! I'm an investor in Virginia (Hampton Roads area), inventory is plentiful BUT the prices are a whopping 15-40K over actual worth due to what we call a sellers market. Any others in my market, or other markets dealing w/the same issues? What are you doing to overcome this obstacle? Also, if you're in the VA market I'd love to hear from you. Be well investor family.Website

[Simcha Davidman]

Hi again :)

Who's to say what they're worth? Things are worth what someone is willing to pay for the income, or in the case of residential properties, what someone is willing to pay to live there. You might only be willing to pay $160k for something, but for a variety of reasons, other people are willing to pay $180k.

It could be that prices are being bid up irrationally. One way to check that is to look at replacement cost. What would it cost to build the house you're looking to buy?

But it also could be that our dollars are worth less and it will take (a lot) more of them to buy the same stuff it did 2 years ago.