Don't Wait To Make Your Next Real Estate Deal

There are many reasons why you shouldn't wait to buy real estate. From rising interest rates to escalating prices to aggressive bidding wars, the Spring market is set to heat up into a summer sizzle of epic proportions. So now is the time to get organized by shopping for a mortgage pre-approval, potentially locking in an interest rate, evaluating properties, touring them and being prepared for battle. Don't wait until it's too late! And if you are selling a property, the wait is over. Conditions including low housing supply combined with buyer demand are now prime for selling your property. But these conditions may not last. So focus on making that real estate deal now.

Ok, all sensationalism aside, it's always a good time to buy real estate. But the market often goes through cycles where there are moments that are better than others to purchase and to sell. The warmer weather of Spring offers renewed interest in getting outdoors to look at properties. So you see more open houses, more showings of properties and potentially more interest in that same property. With the housing inventory still at a low level, bidding wars are often sparked. This is where strategic negotiation skills come in handy. But first, before you look at and bid on properties, you have to know how much you can spend. So get a pre-approval and lock in that interest rate before they climb. According to Bankrate, current average interest rate on a 30 year fixed mortgage is currently at 4.58%, but could hit as high as 5.1% in 2019. So as the percentage increases, so does your monthly mortgage payment. Get in low now so you aren't adding thousands of dollars to your purchase.

According to Forbes, in comparing national averages from January 2018 to that of January 2017, the median home price stood at $269,500 up 8%, days on market 89 days down 7% and inventory at 1.23 million listings down 8 percent. Since we are still in a Seller's market with low supply and high demand, there are many more reasons to "act fast" on buying a home or investment property. For now it's Sellers who stand to gain handsomely as they are the ones who waited till the market tipped in their favor. But don't fret...there are deals to be had that can become great investments, but you have to be diligent in finding them. If you are selling your property but have been waiting, the wait is over. Your time has come to capitalize on favorable market conditions. With low inventory, Buyers are chomping at the bit and starting their real estate shopping earlier this year. For the last couple of years, Sellers have been getting list price or above for their properties, but this could change with an increase in new construction and the rise in interest rates.

For Investors, REIT magazine interviewed many bankers who feel that if the gross domestic product combined with increasing wages and job market growth continue in it's current positive direction, 2018 will make for a pretty good real estate investment year. Even CBRE sees a steady growth in real estate, especially in multi-family properties. If you are investing in rental property, look at markets with sustainable growth in infrastructure, neighborhood redevelopment and overall economy. Also look for a rise in the migration of workers who are looking at places where good jobs offering competitive wages are being created. Even on the entertainment forefront, there is an increase in real estate reality shows being created that emphasize how housing investment and home improvement is this country's newest pastime. Good news for those that like to either flip properties or do a full out renovation! Again though, the competition is fierce among both home buyers and investment property buyers, so if you find a property you like for a reasonable price, don't hesitate to make an offer as hot properties don't last long. If you snooze, you may lose on a great opportunity. I often find properties that go under agreement the same day they're listed.

Making an offer they can't refuse is probably the most intricate and delicate part of a real estate deal. Granted you may spend hours touring and analyzing properties before proceeding, but strong deals are thoughtfully put together and take careful strategy much like the art of chess. Every buyer wants a deal and every Seller wants the most money for their property. Many people end up meeting in the middle unless of course there are multiple offers. So bid it to win it. You can still get a deal without low-balling. This is where an industry professional, such as a Realtor, is a valuable advocate to have. A good Realtor understands comparables, contingencies, days on market and market trends. For you investors there's return on investment, cap rate, cash on cash, and many other variables to consider. A knowledgeable Realtor will help you make that enticing and acceptable offer to seal the deal.

Buyers, there are many ways to find properties: the Internet, Auctions, the MLS, FSBO/Off Market, through a Realtor, a Wholesaler, or by an individual Seller. And Sellers there are many ways to find qualified Buyers. But one thing remains clear, 2018's housing market is slated to be a strong one. Here in Pittsburgh, PA it is already off to a vigorous start. So don't wait! Get in the game and build equity and future wealth with real estate!!