The Five Secrets to Being Successful in the Real Estate Market
Everyone either knows someone in real estate, or has an opinion in real estate. When you are in the market to either purchase or sell your home, you are probably going to get polar responses to the same question. For example, if you ask whether it is worth it to stage your home or sell it as is, you will probably hear “NO! Don’t waste your time or money on staging” but in the same day, “Yes! You absolutely need to stage your home, it’s totally worth the money!” The answer is; both are perfectly acceptable answers. At the end of the day, buying and selling your home is a unique experience to each person. Here at the Darda Group, our 5 secrets to real estate have nothing to do with the homes themselves. In fact, it’s more about your knowledge than anything else. So allow us to introduce to you; the 5 secrets to being successful in real estate.
1.Location is key - know what your price range is and how zip code can impact the overall price of a home.
When beginning your search in real estate, knowing where you want to buy a home is by far one of the most important aspects of purchasing a home. Things such as population growth rate, average home prices, job availability, and school districts, vary drastically based on zip code. So before you begin seeing homes, make sure you know the area you want to purchase a home in so your real estate agent and lender can make sure they send you homes that fit your price range and fit all of your needs.
2.Find trustworthy real estate experts - working with a real estate agent who has experience in the market you are looking in can drastically improve your real estate journey.
Ask yourself, when was the last time you hosted an open house, or dialed hundreds of phone numbers, or door knocked a community, or prepared a marketing campaign? If you are like most, the answer is you probably can’t remember a time of ever having to do any of those things, let alone all of them to buy or sell a home. That’s why partnering with a real estate expert in your area puts you miles ahead of the competition or doing it on your own. According to the National Realtors Association, 86% of homes were sold on the Multiple Listing Services, which is a site that is only accessible by real estate agents. What this means is that you are much more likely to sell your home by having access to the MLS, which is only available by working with a real estate agent. When purchasing a home, according to the National Realtors Association, you increase your chance of finding the perfect home for you by 49%. What this tells us is that you wouldn’t perform surgery on yourself, you would go to the best surgeon you can find for your procedure. So just like in real estate, partner with the best agent to help you meet your real estate goals.
3.Do your research - understand the current economic, job, and housing markets and how that can impact what you can afford.
We all saw what happened to the real estate market in 2020. It was the record setting year in the entire history of real estate. And it massively impacted each and every person, whether they are purchasing a home, selling a home, or even renting. The pandemic was not the only factor in the massive real estate boom. The economy plays arguably the largest role in factors of a real estate market. The housing market is directly related to the United State’s GDP. What this means is that if the GDP begins to take a dip, and the value of a dollar decreases, then the value of real estate will also decrease. The job market can also impact the real estate market in regard to job availability and minimum wage levels. For example, here in Southwest Florida, there are 4 major companies that have headquarters here; Chico’s, Hertz, Arthrex, and Gartner. Having headquarters in cities with competitive wages can increase the cost of living in cities because people will move to those areas just to work at those companies. So understanding what jobs are available in your desired cities can allow you to plan for the future and understand what the cost of living is for that area. Lastly, understanding the housing market is of course extremely important when selling or purchasing a home. Overall, building a base knowledge with these 3 indicating factors will help you reach your goals in real estate.
4.Get your finances in order - make sure you have a budget and that you can afford the property you’re looking at.
Real estate really needs its own dictionary. Common terms said by experts are equity, line of credit, discount points, appraisal contingency, or escrow payment. All of these terms have one thing in common; they directly impact the money you either put in your pocket or take out when buying or selling a home. One of the best things you can do for yourself is partner with a mortgage lender or real estate attorney who has vast knowledge and expertise in the world of money in real estate. Set a budget prior to meeting with these people, and research the right questions to ask them to make sure you understand exactly what is happening with your money. Their jobs are to make sure you make the best, most financially sound decisions for yourself and that you have set yourself up for success in the future.
5.Look for the long-term - don’t just focus on the short-term gains, think about how the investment will benefit you in the long run.
As mentioned before, real estate is a long term game. According to the New York Times, the average time a person owns a home is 13 years. Imagine working in, driving in, or eating in the same place every day for 13 years? You would want it to be perfect. We all know that there is no such thing as perfection when it comes to purchasing a home. Most people end up purchasing a home that they feel is great for them now. Our expert advise would be to think about yourself in the next 2,5, and 10 years. Do you think you will want to move out of the area? Do you plan on going to school? Do you want to start a family? Are you in a career that you are passionate about? Are you partnered with the right people? All of these questions can help you begin to think in the long term. It is ok to make changes to your home and lifestyle as time moves forward, but always remember that this is a long term investment and think how these changes can impact the value of your home. Homes are not like cars where they depreciate overtime. Home prices can fluctuate month to month, and any structural or cosmetic changes can impact that price. So again, always think in the long term in real estate.
These 5 secrets to real estate are the stepping stones, the foundation, the basics of real estate. Partnering with trusted and knowledgeable real estate professionals can help you navigate each aspect of the real estate market and get you across the finish line of success. Interview agents and work with the group who you know can help you succeed.