Unless you've been hiding under a rock and have not been keeping up on the magazine articles or television news programs in the past six months, then you have probably been hearing about volatility in major real estate markets across the country.
There is no doubt this is a period of unprecedented transition. It's hard to have a positive attitude about buying or selling properties when you are constantly bombarded by the negative media coverage. You may also be hearing unusually high negative "chatter" around town and from your neighbors. There are still rich opportunities out there. You just need to be smart and stay positive this year. Here are a few tips on how to make money investing in real estate in 2008.
1) GET YOUR FINANCES READY: Make sure you qualify for the lowest rate possible. Some of the best rates in the past 30 years are available right now. Do the work up front. Meet with a mortgage professional as soon as possible and make a plan. Know your FICO score and do what it takes to qualify for the best loan for your situation. Be sure you understand all the fees, expenses, and tax implications associated with your investment. Don't spend so much that it will be impossible to make the payments. You want to be sure that you don't get into a position that you are forced to sell. Remember, you want to own this property for as long as it takes to make money! After you have figured out how much you can afford then it is time to search the marketplace and sniff out the best deals.
2) BUY & HOLD: Bargain prices and low interest rates are the perfect combination for some amazing buying opportunities. Don't be afraid just be smart. Even though it may seem counterintuitive, the best time to buy is when the media is not ranting about the record levels of appreciation. We have all heard the old adage about buying low and selling high, well this applies directly to buying in a down market and selling when there are record levels of appreciation. Get a great price now and plan on holding on to it.
3) FIND THE BEST POSSIBLE DEAL: There are some great deals out there. Know how to spot them. Look for properties under $200,000 or at least under the national median price of $220,000 (3rdQ 2007 N.A.R. data). This price range gets the exposure from the highest number of perspective buyers when it's time to sell. Consider some of the other things sellers may be offering like closing costs, upgrades or additional discounts. Know where the emerging markets are and the most desired neighborhoods and only consider those areas. The most important part is to be patient. Be ready to buy when you find the best deal and leave no stone unturned.
4) SELLING PROPERTY IN 2008: You've heard that selling can be difficult, but it's not out of the question. There are buyers out there; you just have to catch their attention. Start with a bulletproof selling strategy. This can include competitive pricing, "buffing out" the property, and maximizing your market exposure through the Internet. Fix loose ends before closing the deal. Look at the price range of other properties in your neighborhood and make sure your property stands out from the rest.
This is when things get interesting so don't follow the herd. There is a revolution happening in the real estate business. The seasoned investors are busy setting themselves up for the next upturn. Don't just sit back and watch people make money.
Even amidst a mortgage market meltdown, Bank of America has just announced its plans to buy Countrywide, the largest mortgage lender in the country. There is a price where property becomes a great deal and a potential moneymaker. Be sure you understand the risks and rewards of owning real estate, and the risk of not owning real estate and watching everyone else make all the money.
Don't look back on 2008 wishing you had taken advantage of the bargain prices. Instead be glad you did invest now and are able to plan a retirement in style.
Visit: www.insideoutrealestate.com
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