How Can You Optimize the Return on Your Home Investment?
Who doesn’t want the answer to that question? The old adage to “buy low & sell high” is what we all aspire to do. The problem is that we can’t foretell the future. If we could, our home investments would no doubt consistently thrive! Since we don’t all possess a “crystal ball,” let’s take a look at the past and see if we can gain any insight into the 2015 real estate market.
Historically, all business is predicated on supply and demand. When there is too much supply for the existing demand, prices drop. Conversely, when there is a huge demand and the supply is weak, prices rise. What does this mean for Realtors, Investors, Sellers and Buyers? It means that we must accurately read the emerging market and prepare to meet the demand.
“Millennials,” born from 1982-2001, are coming of home buying age. This means that there will be an increased demand for starter homes. These will often be below the median price range for your local market. However, with all of the government-backed programs for first-time buyers, homes may need to meet certain standards in order to qualify for that mortgage loan.
On the other end of the affordability spectrum, luxury homes are a completely different market and elements like view, privacy, waterfront, etc. will continue to dominate the luxury market. One interesting factor in the very high-end home market is that these buyers are often coming in with all cash. This makes the entire transaction process much smoother.
If you are contemplating selling your home in 2015 it is advisable to seek out a listing agent who really understands the demands of homebuyers in your price range and has a clear, methodical plan of action to get it sold. If the plan doesn’t make sense to you, ask lots of questions. If they can’t explain it clearly, how will your prospective buyers be impressed? Think of what will actually draw buyers to your home.
The key to selling homes in this market is to stand out from the rest of the inventory. We have some cutting edge recommendations on how to “sell high.” If you are not an agent and call my office @ 916-941-7707 we will be happy to share them with you.
If you are planning to buy, don’t hesitate to research the Internet. Experienced Realtors love educated buyers. We really do. The more you know, the better equipped you and your Realtor will be to negotiate with sellers.
If you have focused on a particular property and are considering making an offer, it pays to know what the seller’s competition is like. Oftentimes, the seller is not fully informed. If you and your agent present an offer that is lower than the seller was hoping, be prepared to present evidence that substantiates your offer. Many times, it will be just the reality check they need to negotiate with you. That’s one way you “buy low.”
Since 2009 people coast to coast have paid me thousands of dollars for my real estate investing advice. At the end of the day, this is the best investment tip you’re gonna get.
C.J. Lauria is a Real Estate Investor since 1988. He is also a Realtor, Author, Speaker, Educator and Director of Invesdoor® Real Estate in El Dorado Hills, CA.
Article was first published in Mountain Democrat