If you are a buyer shopping for a home now you will find some great buying opportunities this fall and winter. Positioning yourself to take advantage of market conditions might be the best investment you make in your financial future. I know there is much fear about what is going on with the financial markets, however one thing we tend to forget is that bad times do not last forever. Those that put fear behind and take advantage of the market will be the ones coming out ahead.
Fear is the number one factor that paralyzes a buyer's decision making abilities. The two most common concerns that buyers have right now are the unknown and not wanting to pay too much for a property. Buying property for most people is emotional but logic is fundamental for making a good investment.
Your personal financial situation is going to be the biggest factor that should determine when to buy. You must have all our "ducks in a row" in your financial life to make the investment. Second you need to consider the market conditions in the area and neighborhoods you would like to live in. Below are some tips that help get some of the emotion out and that will help you develop a strategy to take advantage of the market conditions.
•· GOOD FUNDEMENTALS - Look for neighborhoods that have good fundamentals such as good schools, commuter routes, revitalization efforts, public transportation, amenities, etc. Out of those, pick the ones that a few years ago were out of your price range. When the market turns these might again be out of reach. Look at these as neighborhoods as if they were on "sale". The other idea is to find neighborhoods that have good fundamentals but for whatever reason their values have been hit harder than others.
•· TRENDS & STATS - Once you've narrowed down your search to two or three neighborhoods work with you real estate agent to pull up statistics such as average sales price, days on market, etc. for the last 24-36 months. The goal is to identify patterns of where the values in the neighborhood might be headed. For example if you see that days on market are getting longer this might be a sign that values could decline and vice versa.
•· DIAMONDS IN THE ROUGH - Right now homes that need cosmetic updating are not selling as well as the ones that are updated. If you can handle the stress of remodeling consider a home that needs updating. You might be able to get a great deal.
•· MUST SELL! Try to identify the sellers that need to sell not want to sell. This is not an exact science however, here is the biggest tip once you know the neighborhood trends and stats. Look for new listings that hit the market that are priced extremely well compared to the competition. Most of the time sellers that NEED to sell will price their homes below the competition from the very beginning. They need to sell immediately and can't afford to sit on the market.
•· BANK OWNED - Look to see if there are any bank owned properties available. Banks do not want to be in the real estate business and it's surprising how much they are willing to negotiate.
These are just a few things to consider. Make sure you meet with a professional to determine a plan specific to your goals and circumstances.
Contact me with any questions regarding the real estate market in Portland, Oregon. I can be reached at 503.802.8845 or at pricer@hasson.com
To learn more about my business visit my website at www.RuthPriceProperites.com
Visit My BLOG to find out more about Urban Homes and Condos in Portland Oregon.
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