Seattle, Bellevue, and King County Real Estate Blog

As most of you are likely aware, homes are not selling at the speed they have in years past.  This means a few things: 

First, we know have more of a "buyer's market" due to a shift in negotiating power back to the buyer after years of a "seller's market."  Because of this, I am dumbfounded as to why buyers are so timid about investing.  Obviously, the tightening of the mortgage industry has made investing more difficult and instilled a sense of fear in buyers, but I liken the situation to what makes people money in the stock market... "buy low, sell high."  Well, now is the chance to buy low, so ultimately I expect buyers to overcome the understandable fear of investing and come around.

Second, investors looking to purchase investment property as well as investors considering options with currently owned investment property need to carefully consider the ease of selling the property as an exit strategy.  As an example, compare a potential investment that has $40,000 of equity built in to a potential investment with $50,000 of equity built in.  Let's say the home with less equity has a much higher level of appeal in general and would likely sell faster... it becomes necessary to consider purchasing the home with slightly less equity to avoid a situation where monthly payments eat into your profits due to inability to sell the home.  *** This is where it is important to have a TRUSTED real estate professional who can help you not only determine market value of the home, but also give an honest and accurate opinion as to how long and at what price it would feasibly sell for. ***

And finally third, stage your investment/personal residence when you are ready to sell your home.  Also, plan this into your potential cost of selling when analyzing if you are considering a shorter term investment.  Statistics show that homes sell FASTER and for a HIGHER PRICE when properly staged... so this is a no brainer (there are cases where staging may not be necessary, but again this is always something to consider when pursuing an investment or if considering to sell property in the near future).

That's all for now... ENJOY THE HOLIDAY SEASON!

P.S. It is a great time to buy low with the intent of keeping the property for a couple years.  Due to an increased level of distressed sellers, we routinely have opportunities to purchase homes with $30,000 - $80,000 built in equity.  Many of these homes are not listed on our Current Investment Opportunity page, so if interested, the best thing to do is contact us and let us know your investing aspirations... we'll keep our eyes peeled for the right investment for you.