Buying Investment Properties in a Seller's Market? Bring Your "A" Game

Summer is here and available properties to consider for purchase continue to be in short supply. And yes, this affects both residential and investment property buyers. Bidding wars have driven purchase prices up. Good news for sellers (maybe list now??), but it has also created anxiety for buyers as inventory is low while demand is high. You may feel that it's just not worth it to look for an investment now, vowing instead to wait till the market levels out. Well that's not going to happen anytime soon as predictions warn this year, and next, to be even more of the same. So why even bother to get in the game?

Rents are rising to the point that it makes sense to buy an investment property, start charging rent and build your equity. Having equity can help you later on in life, as you may be able to borrow on that to make property improvements, purchase another property, consolidate your debt, or cover major unexpected life expenses...not to mention interest rates are still low enough to get an affordable mortgage. And didn't you want to get into that up and coming neighborhood while the market there is still fresh?

In a "seller's market", making a purchase must be handled carefully, with commitment, planning and a sense of urgency. First things first, unless you are paying by cash, get a pre-approval. I can't stress that enough. Why look at properties you can't afford adding even more angst? Having that pre-approval will let you know how much you can comfortably afford. Ok, you got the pre-approval, now what?

You may think "Oh why do I need a Realtor when I know what I am doing." Right? I can save the money spent on commissions, make an offer, buy the property and that's it. Piece of cake, YES? Uh, NO. Realtor's are experts in real estate and as such help to protect your financial interests. They can point out even obscure things that can end up costing you way more in the long run. They also have access to the MLS, which is still the most comprehensive and complete offering of properties on the market. Realtors use the MLS to get you the property that's just right for you. Realtors are strong negotiators when it comes to making an offer, especially in a multiple bid situation. And in this market, you want to come with your best offer, not a low ball one. Getting creative can't hurt either. Realtors understand complex and ever changing housing and zoning regulations. But not every Realtor is created equal. So get a Realtor® that is a part of NAR, The National Association of Realtors, as that is someone who is committed to their profession, dedicated to their clients, and must strictly follow the organization's code of ethics. You need a Realtor to help you buy a home, a property or a business and their experience is invaluable, especially in a seller's market. And while it's OK to interview several Realtors, don't use more than one to help you with your real estate needs. Do your best to work with the Realtor with whom you have a confident and sound relationship that builds over time. Get to know him or her as while they get to know your goals and requirements. Granted I might sound biased, but having a professional on your side will only enhance your investment results.

When you find a investment property that you like, move quickly! Call your Realtor to make an appointment to see it-- Right Away. Don't delay. Remember you are competing with other buyers in a housing shortage. Haste will only make waste....If you snooze you may lose...You get the point. And listen to your Realtor's advice in a multiple bid situation. These people do this for a living, day in and day out, so leverage their knowledge. But remember, that while nothing in life is guaranteed, a good Realtor can help guide you towards securing your next sound investment!!

Act now as it's always a good time to invest in your future!

Your Home. Your Business. Your Future!