How to buy correctly in a hot market

We’ve all heard the phrase “location, location, location.”  That’s the home buying gospel, right?  If you purchase property in the right location it’s going to have more value down the line.  Is that true?  In our crazy hot market how do you buy correctly and stay within budget?  I love first time homebuyers but I also look at all real estate purchases through an investment lens.  Even if you are planning on raising a family in your new home and staying there forever I still want to know that you are making a sound financial decision.  Based on my experience, here are some tips on your home purchase from the perspective of a REALTOR® who is also an investor:

1. Avoid buying on a busy street.  I know that that house is “so inexpensive” compared to everything else in the neighborhood that you think you’re getting a good deal.  You’re excited because it’s been on the market for awhile and everything else is in multiple offers.  What happens when you go to sell, though?  You’ll be in the exact same position with a discounted list price and longer days on market.  If the house is perfect for you and you don’t mind the street it’s all good, just make sure you are prepared to take less than your neighbors in the future when you sell.
2. Take on some projects.  You’d be amazed how many houses would be worth significantly more with some new flooring and fresh paint.  If you can look past minor cosmetic imperfections you can get a great home that you can build equity into.  Not someone who can see what’s possible?  Scared of how much it might cost you?  Find an agent who has the experience to help you polish that diamond in the rough.
3. Buy just outside the hot neighborhood.  Everyone you know is really excited to be in that one hip location, right?  What happens when prices in that location reach a fever pitch?  The neighborhood next door usually gets the spillover and prices there start to increase.  Maybe the area doesn’t have as many trendy shops as you’d like but if you can hop on a bike and get to the cool spots that quieter location might be one to consider.
4. Look past bad listing pictures.  It’s easy to fall in love with a home online before you ever tour it.  Conversely, it’s easy to scroll right past the property with the dark cellphone pictures and the cluttered presentation.  If every buyer does this you can bet there’s a lot less activity on what might be a perfectly good fit for you just because of the packaging.  It may not be love at first sight but keep an open mind.  If you can see past a poor presentation you may find your dream home for a great value.
5. Understand that your first home doesn’t have to be your last home.  Almost every buyer wants to purchase their dream home right away but few people have the funds to make that happen.  If you can think about your first home as a stepping stone to where you want to get down the line it changes the game.  Purchase correctly and build equity.  Down the line you can tap into that equity to move up into the house you really want.

Happy house hunting!

Kim Parmon

Principal Broker | Earth Advantage Certified | OR

She/Her

Kim Parmon Principal Broker  Lead Listing Agent Earth Advantage Certified | OR kim@livingroomre.com Oregon is the fifth state that Kim has called home in her life, and this one is sticking!  After moving multiple times in her childhood, Kim fully understands how empowering homeownership and having roots is...

Read More

• T: 503-438-5101
• kim@livingroomre.com