Rising inventory, lower mortgage rates, more first-time buyers—there are countless reasons why buying and selling real estate in Madison is going to be very good this year.
However, it’s important to be realistic when investing, and to be a smart seller or savvy buyer. Making common mistakes can negate all of the positive factors; conversely, thinking like a pro can make your investment the best one you’ve ever made.
Here are five ways toward an intelligent investment:
1) Think ahead
If you’re looking to turn a quick profit or become instantly wealthy, real estate probably isn’t the way to go; it’s more of a marathon than a sprint. However, if you’re interested in an investment in your future—one that will build equity while promising stability—purchase a home. Just be sure to buy one you can actually afford, then enjoy living the American dream while simultaneously working toward the end goal.
2) Look at the numbers
Want to invest the way the top industry experts do? To them, numbers talk—more specifically, interest rates. Simply put, the lower the current mortgage rates, the less you’ll pay each month. Rates are currently at record lows, so if you’re wondering if now is a smart time to invest, it is.
3) Trust your instincts
Alternatively, being savvy often means going with your gut. Sometimes fact sheets, statistics, and data all point in one direction, while deep down you know that a particular month, neighborhood, house, or buyer just is or isn’t right for you. In the end, it’s as much about feelings as it is about facts.
4) Avoid too-good-to-be-true
Similarly, if it seems too good, it most likely is. Leave get-rich-quick schemes to the realm of late-night infomercials, and beware of incredible deals, rent-to-own, fix-it-and-flip-it, and the overly easy. Smart investors know these are often surefire ways to lose it all.
5) Do due diligence
Once you’ve been pre-approved for a mortgage, chosen a real estate agent you trust, and found a home that fits your budget, you’re well on your way. But there’s more: don’t ignore other important factors that affect your home payments and the value of the purchase. These include understanding and reviewing all HOA fees and stipulations (when applicable), securing home insurance, getting an accurate home inspection and appraisal, and shopping around for your mortgage lender. When in doubt, talk to the pros—a.k.a the real estate and mortgage brokers whose job it is to help make it all a reality for you.
Take the time to invest in your dream, apply some critical thinking, and the rewards will be immeasurable.
If you’re looking to buy or sell a home in the Madison, WI area, or have any questions about the process, please call or email me anytime.