The world of real estate continues to be a prime opportunity for people looking to create a new income stream. For those interested in real estate investing, the time is now to make an investment that can be flipped for a higher value. The housing market is slowly recovering following the recession, and high demand combined with low interest rates are driving housing sales to a high. Starter and midrange homes are returning to pre-recession rates and higher priced areas are seeing their numbers stabilize. Several major markets, like Seattle, Denver, and Portland are growing at a higher rate than any others, as these cities attract new residents looking to put down roots. Whether you’re just starting out in real estate investing, or a veteran agent looking to turn the current conditions to your advantage, it pays to keep up on the current trends. Here at FlipOutAcademy, we’re here to help you get a leg up whether you’re looking to buy or sell. These are ten tips that will give you the advantage you need in the competitive world of real estate investing.
Tip #1 – The Time To Get That Starter Home Is Now!
Most the home sales this year are expected to be first-time buyers, as millennials move from renting in urban areas to owning their own homes. Expect high competition for available retail, which means a decrease in available inventory. Bidding wars could be highly competitive this year. Winter will see a decline in inventory, but that can work to your advantage – the homes still available will have highly motivated sellers, which can mean great deals.
Tip #2 – The Right Agent Can Make All The Difference!
If you’re looking to flip a property, it can be tempting to go it alone. The best strategy, however, comes with an experienced real estate agent. Before hiring an agent, it’s important to look at their online presence. This includes their LinkedIn and business pages, their social media and reviews, and their marketing. Do they do a good job of selling themselves? When you’ve narrowed your search down to your top picks, don’t be afraid to ask them questions about their sales history and strategy.
Tip #3 – It’s A Seller’s Market. You Can Maximize That Advantage
As a seller, you’re trying to sell yourself as much as the house. How you present the house and yourself as the owner will make a big difference. It’s important to keep the house spotless, so it looks like somewhere people will want to live. Renovations are a difficult question as it’s a significant investment. The best strategy is to focus on cosmetic renovations, to sell the idea of the house. Keep things bright and inviting.
Tip #4 – Don’t Be Afraid To Look For a Loan
Mortgages were scarce during the recession because most lenders asked for twenty percent to even consider a loan. However, the market is getting easier to navigate as the economy improves. A credit score as low as 750 will generally be enough to get a loan with a decent interest rate. Be careful not to be lured in by interest-only loans, as the collapse of those is what led to the recession.
Tip #5 – Time To End The Rental Cost Sink
Did you know rents are rising faster than home costs? Mortgage rates remain low, and that makes it the ideal time to take that leap into home ownership. Many renters are just stuck in the normal of paying rent every month, but the climate has rarely been better to get your hands on that first starter home. You’ll have more space, and the weight of that monthly rent payment off your shoulders at last.
Tip #6 – Buying A House? It’s Not Over Until It’s Over
It can be easy to consider a house a done deal based on a verbal promise, but the bidding war for a house often continues until minutes before a contract is signed. Agents will often play bidders against the other and give false assurances. Always keep in contact and ask questions until pen is on paper. Make clear to your seller just how much you love their house. A personal connection can often be that last push needed to close a house.
Tip #7 – It’s Not Just About The Inside Of The House
An important thing to remember when selling a house is that you’re not just selling a house, you’re selling an image. Studies have proven that houses with beautiful, uniform lawns are more likely to sell. Putting that little extra effort into maintaining the lawn may be the last push needed to put your house above a competitor’s.
Tip #8 – Know Your Local Market
Every housing market is a microcosm, and the climates in the overall market may not mirror yours. Whether you’re a buyer or a seller, scanning your local real estate market in the papers is key for anyone with an interest in real estate investing. Realtor.org is an invaluable resource that can give you an overview of your local market.
Tip #9 – Be Prepared!
If you’re planning to sell your house in the spring, when the market is best for sellers, you’re going to want to start your preparation in the quiet winter months. This is the ideal time to do renovations, especially since contractors are less in demand in these months for renovations. The key to successful real estate investing is being ready to go when the time is right.
Tip #10 – Consider Your Environment
Not every area is equal. Your real estate market may have unique environmental conditions to consider when buying or selling. Is the area prone to floods? Avoid oceanfront property no matter what the agent tells you. Is it unseasonably hot or cold during summer or winter? That may affect the type of home that’s ideal. Each area carries its own unique challenges and assets.
With these ten tips, you’ll be able to enter the world of real estate investing with a leg up over your competition. FlipOutAcademy is here to make sure that whether you’re buying or selling, you’re ready to get the most out of the market.