Real estate markets across the US have taken a beating like we haven’t seen in a very long time, if ever. A look at real estate comps in any area will show you foreclosures and short sales galore. It is tough if you are a homeowner or seller. However, for buyers and investors, this is the market of all markets!
Why is this such a good market for buyers? Well, there are a number of reasons. The first is there is a slew of houses on the market. The surplus of houses drives down prices. Buying cheap is the way to turn a big profit, and there are simply a ton of quality listings on the market that are selling at cut rate prices. The second reason is sellers are highly motivated to move their properties. They may be facing financial problems or just need to chase a job to some other location. Regardless, a buyer holds all the leverage in negotiation.
This doesn’t mean that you should ignore the tried and true rules of real estate. They still apply. The first among them is location, location, location. Make sure you buy in a good area, but carry the concept one step further. Always try to buy the cheapest house on the block if it can be improved to the level of quality found in other properties.
Make sure you have sound funding in place before considering purchasing anything. Whether you have private funds or plan to use a bank loan, it is wise to have it in place on the front end. Lastly guys, this real estate market is often touted as one of the worst in the history of the country. But the truth is it is one of the best for buyers and investors! Happy investing!