"It Might Be a Good Idea to Gain a Foothold in the Market"

By
Real Estate Broker/Owner with Austin Texas Homes, LLC 453249

Over the past 2-3 years or so, prices in Austin, Texas have been skyrocketing in many areas. As a result, I've seen many buyers wait too long to purchase, only to find that they are unable to qualify when they are ready to go. I helped two different young ladies earlier this year who were both in a very "affordable" price range ($135-140K) who both ended up having to rent again after rejecting homes that were less-than-perfect.

While I completely understood how they felt, I also tried to express that there is almost no risk involved with investing in a home priced at the lowest end of the local market, and it is almost invariably a better financial move than continuing to rent. The only exceptions that come to mind in this scenario:

1. The house is in atrocious condition, OR

2. You are planning to flip it quickly.

Otherwise, this is as close to a sure thing as you are likely to find with any investment scenario. Buy low, sell high(er). Right?

I'm not knocking these particular clients, because I understand that a first home purchase is daunting. However, I did try to impress this phrase on each of them:

"It might be a good idea to go ahead and buy, so that you can gain a foothold in this market." 

 

What does this mean?

Well, if you're able to go ahead and purchase something in reasonable condition, you can always sell it later and you are likely to make money passively (i.e. just by holding it for awhile).

The real estate profession sometimes has a reputation for trying to make a quick buck, or for being dishonest or greedy (despite the fact that many full-time agents aren't really making great money). While I feel thankful and blessed that this business has been personally rewarding and lucrative for me, I would never counsel someone to make a purchase that I felt might be a bad idea.

If you're reading this, and you are considering making a foray into the Austin-area real estate market, I would love the opportunity to help you find the right place. Prices continue to increase while interest rates remain at historically low levels.

Thanks for reading!

 

Image credit: https://www.flickr.com/photos/druclimb/ 

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If you're looking for a home in the Austin area, you can also visit my primary website at www.austintexashomes.com.  Thanks!

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Rainmaker
1,523,655
Sybil Campbell
Long and Foster REALTORS® 5234 Monticello Ave Williamsburg, Virginia - Williamsburg, VA
REALTOR® ABR, SFR, SRES Williamsburg, Virginia

Jason Crouch,  It sounds like the Austin market is booming and the buyers in that area should contact you!

Nov 19, 2014 01:40 PM #1
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

After what happened between 2007 and 2012 in my market I can't every tell a buyer that again.  Every single price range in our market lost huge amounts of value in that time frame and it could happen again.  

Nov 19, 2014 02:01 PM #2
Rainmaker
1,709,823
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

I love following the Austin market - and love getting to come back to Austin each year for MegaCamp - thanks for an informative post. 

Nov 19, 2014 08:41 PM #3
Rainmaker
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Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

You make a good argument;  there is also the idea of the intangible benefits of owning your own home, not subject to the whims of a landlord.  Oh, and not to forget the tax benefit, too.  

Nov 19, 2014 10:35 PM #4
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

You've got to get in the market, as you say...gain a foothold, to benefit from it.  There is no instant wealth in real estate.

Nov 20, 2014 06:33 AM #5
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Jason Crouch

Broker - Austin Texas Real Estate (512-796-7653)
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