Follow Market-Trends in Real Estate

Markets go up, markets go down and sometimes they just lay there flat like a runny pancake. Either way, savvy investors can create huge profits and bail out sellers that can't get out of their own problems.

In a hot market, a nice house may sell within a week at or above the asking price. Even in hot markets though, there are sellers who need to sell quickly and can't afford to fix up a house to get it ready to sell. Most buyers want a house ready to move into and for a seller whose house needs some work, they may not get an offer in the time they need before risking getting behind on payments.In this market we can pay a little more for a house, because we know if renovated property, the house will get at or above full market price and will likely sell quickly.

In a soft market the rules are different. Even in pristine condition, a seller may need to wait 6 months or more for a real buyer. If someone needs to sell quickly, they may not be able to wait and would take a hit on the price for a quick sale. In this case the investor can buy it better - farther below market, do the renvoation if needed or just clean it up in some cases and market at a "30 day price". Often this is less than market value.

You see in either case, knowing what the market will pay and how quick they will pay it is all that matters. In the hot market a gorgeous 200k house may get 210k if is the nicest one on the block, staged property with every little minor 'fix it' item previously addressed. And it might go in less than a week.


Udo Ginczek
http://www.netbuc.com