TOP 13 TIPS ABOUT THE REAL ESTATE MARKET THAT NEVER CHANGE

Real Estate industry is volatile and its market can be uncertain. Prices can shift in a short time due to different factors such as demographics, interest rates, economy and government policies. Demographics are defined as the data that describes the composition of a population, like gender, age, race, income, etc. Baby boomers aging is an example of major demographic shifts, that tend to affect everything in the real estate sector from demand to consumer trends. When it comes to interest rates, the cost to obtain a mortgage to buy a home is lowered as it drops, creating a high demand for real estate that will consequently push prices up. It has a different impact on real estate investment trusts or other equity investments in real estate.

The overall health of the economy usually impacts the value of real estate. Influenced by indicators such as GDP, manufacturing activity, employment data, and so on, the real estate market usually follows the economy’s flow, rising and falling. In addition, government policies generally play a major role in determining property demand and prices, with deductions, subsidies, and tax credits being some of the ways the government can temporarily boost demand for real estate. Although many different factors can impact the real estate industry, there are certain things about the home buying and selling process that remain constant.

These are #13 tips you can have about the Real Estate market.

1. Buy Whenever You can

Different from what people think, time is only important when it comes to selling, whereas buying hasn’t a wrong time. In a market with booms and busts, prices go up and down. The buyers who win are the ones willing to ride the wave, see a purchase through the cycle. So buy whenever you can and hold till the sale is profitable. - Courtney Poulos, ACME Real Estate

2. Always Conduct Thorough Research On The Current Market

Although real estate values fluctuate due to local supply/demand dynamics and broader national economic considerations, it's important to remember that properties always sell for no more or less than what the market will bear at that time. Whether buying or selling, do your research, plot your data points, use a variety of resources so that you're confident in your list or offer price. - Garratt Hasenstab, The Mountain Life Companies™

3. Don't Reject Low-Priced Offers Without Negotiating

Selling your home can feel like giving up something you love, so a low-priced offer can leave sellers feeling insulted. Homebuyers base their offer price largely on their own affordability but will consider raising it if the location is just right or if there is value in renovations already done. Stay open to negotiations and working with the buyer rather than turning down a low-priced offer. - Beatrice de Jong, Open Listings (YC W15)

4. Get Into The Rental Market Where It Makes Sense

People will need shelter for the rest of their lives. With the life expectancy, that's a lot of rent to be paid. Buy what you need now and do it in an area where the population is on a rising and sustainable course. - Michael J. Polk, Polk Properties

5. Factor In The Fees

In real estate, there are middlemen and a lot of them — the escrow company, the title company, the brokers, the lender, etc. Each one of them is taking a drop from the well. While these fees will all likely go down, they aren't ever going away and buyers and sellers need to accept that. - Ridaa Murad, BREAKFORM | RE

6. Buy A Home To Secure Personal Rent Control

Although the real estate market fluctuates over time, there's one thing would-be first-time homeowners often overlook. Yes, there are tax advantages. Yes, you paint the walls any color you want. Yes, you build financial equity. But you also have a built-in rent control. With a fixed-rate mortgage, you'll know what your house payment will be for the next 30 years — not so when you're a renter. - Eileen Lacerte, Hawaii Beach, and Golf Properties

7. Always Invest Based On Location

Regardless of the interest rate or transaction environment, good locations with strong demand and access to transportation infrastructure will continue to outperform in the long run. Location is certainly the evergreen factor telling you where to invest. Interest rates and transaction volumes are better indicators of when to invest. - Marc Rutzen, Enodo Inc

8. Find Trustworthy Partners In The Real Estate Process

In an industry that is heavily commission-based, it is very important to find and work with trustworthy and genuine individuals who will have your best interest at heart over their own pocket. - Engelo Rumora, List'n Sell Realty

9. Keep Your Home's Condition Pristine

If You're Looking To Sell Well-maintained houses always sell faster, even in a slow real estate market. Buyers appreciate houses that look move-in ready and are updated versus those that need a lot of work. In a hot real estate market, most houses sell quickly. But during a cooler market period, buyers can get very picky, so it will be the nicer ones that continue to sell. - Jeremy Brandt, We Buy Houses®

10. Be Selective And Don't Be Afraid To Walk Away

The old real estate adage is true: You make your money when you buy, not when you sell. By being selective about your real estate purchases and using larger amounts of cash in the transactions, you insulate yourself from the ebbs and flows of the market. Deals don't always work, so do not be afraid to step away. Sometimes the best investment to protect principal is no investment at all. - Blake Plumley, Capital Pursuits LLC

11. Approach Negotiations From A Collaborative, Not Competitive, Standpoint

It's a mistake to go into real estate negotiations thinking that the other side is your adversary and to be fixated on a specific price. The goal should always be working together to come to an agreement that satisfies both parties. Digging in your heals can sabotage a negotiation. Take a step back and put yourself in their shoes. What's a win-win for everyone? - Brad Le, Climb Real Estate

12. Find An Experienced Local Real Estate Agent

The internet has changed real estate forever. Home sellers and buyers can get more information about real estate than ever. But what they can't get online and can only get from a local real estate agent, is that insider knowledge. That local "go-to" agent who is a neighborhood expert knows things about the homes and the community you just can't Google. Their value will never change. - Lane Hornung, zavvie

13. Remember That A Home's True Value Is Determined By The Buyer

No matter what the market conditions are, one aspect always remains the same — the true market value of a home is only equal to what a buyer is willing to pay. Just because a seller believes their home is worth a certain amount of money, it does not mean that the ask will be equal to what a buyer believes to be an appropriate "bid" price. - Matt Pettinelli, CapGrow Partners LLC 

Source: Investopedia, Forbes

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