Real estate transactions function a little differently than your typical day-to-day purchases.
You can’t just walk into a store, swipe your credit card, walk away with a brand new home, and live happily ever after. Things are a bit more involved than that…
Purchasing a new home is a complicated process that varies according to the conditions of the market and the numerous middle-men involved in pushing the sales through.
Despite all of these factors, there are a few things about homebuying and selling that remain constant.
Here are 3 simple tips to keep in mind when you’re investing in the real estate market.
1. Buy whenever you can.
There’s never a wrong time to buy a new home. There’s only a wrong time to sell one.
Residential values are always fluctuating, but if you can tough it out through the ups and downs, it’ll pay off in the end… literally.
Sure, strategically making a home purchase at the right moment may make things easier for you in the long run, but you can always boost the overall value as time goes on.
2. Get into the real estate market where it makes sense.
Feel free to buy whatever home or property you need as long as it’s situated in an area where the population is rising.
Good locations with strong demand and access to transportation infrastructure will continuously outperform in comparison to others.
In the same way that interest rates and transaction values offer insight for WHEN to invest, the location can be used to tell WHERE to invest.
3. A home’s true value is determined by the buyer
Yes, it’s important to take market conditions into consideration; however, at the end of the day, the buyer is the one who is in control of the final payment.
No matter what factors are influencing the market, the true price of a home is always equal to what the buyer is willing to pay.
Just because a seller believes their house is worth X amount of money, doesn’t mean the ask price will be equal to what the buyer believes is an appropriate bid price.
Sometimes it’s necessary to walk away from a deal or to negotiate until both parties have reached a win-win agreement.
The next time you’re looking to add another residence to your list of assets or exchange what you currently own for some additional income, remember these 3 easy tips.