Does it Make Sense to Buy a Home in a Rising Property Market?
When buying property, timing is everything. One thing about finance is that if you have capital, you need to work on that capital immediately to make money. If you want to buy a home in a rising property market, you should analyze the real estate market conditions. If the market is on the up, there can be no better time to buy property than right now.
With the rising costs, you can be sure that what you buy today will escalate in its value over the years. If you plan the home buying process carefully, your investments can go up by as much as 50% in just a few years.
When planning to buy property in Bellingham or any other rising property market in Washington, how can you make sure you get a good deal? It’s very important to get an upper hand when it comes to price negotiations. The first thing you need to realize is that getting into any investment at the wrong time means you will need to spend longer to reap its rewards. Since the property market in Bellingham is rising, you need to make up your mind fast.
How to get a good deal when prices are going up
While it’s always a profitable idea to buy a home in a rising property market, here’s what you need to do to get affordable prices.
Ensure that it’s a good property
The key to finding a good deal lies in getting the right property that suits your needs. You need to check comparable sales and find the better deals. It is a long process and takes a lot of hard work, but when done correctly, it can ensure that your property grows in its value over the coming years.
Make the right offer
When you finalize a property and are ready to make the offer, make sure you ask some questions to find out if the owner is desperate to sell (if they are desperate, they may take a below-the-mark offer). Here are the questions you need to ask:
- Why are they selling the property?
- How many offers have they received?
- Was the property occupied or bought as an investment?
- How long has it been available and on the market?
These questions will make many things clear in your mind and you will be able to negotiate better. Try to make an initial offer. If there is a higher bidder, you can make a counter offer.
Make offers for several properties
It’s common for first-time buyers to get attached to one property. Don’t make that mistake. Make acceptable but low offers on multiple properties. When you make multiple offers, you can find the seller who’s desperate to sell. With several offers, you have more opportunities of getting the right deal.
If you have enough time and are not in a hurry to buy, you can make many offers and wait for them to respond. However, if you want to buy quickly, it’s best to hire a property agent. An agent will make sure you get the cheapest price for the property you’re planning to buy. This can definitely be an advantage if you want to buy a home in a rising property market.
If you have a property that you can trade in, you can have an upper hand during negotiation. You can tell your agent that they can handle both your processes – selling the property in hand and buying a new property.
It can also be a good idea to search for a few off-market properties. Your agent can help you find new properties even before they are listed. If they haven’t been listed yet and you go and make an offer, the seller just might be interested and you can buy it before it even makes to the listings. This will cut your competition.
You can also go through a few unrenovated properties. Sometimes, you just need to put in a few bucks to renovate them and it can increase their value. This can be a great way to find a good deal. With such properties, the more unrenovated they are, the more profitable they can be, as you can spend some money and get it back in equity.
Trust an agent who knows how to buy a home in a rising property market
If you decide to buy a home in a rising property market, it makes perfect sense – you just need to invest at the right time.