Flowers Are Blooming,,,Real Estate Is Booming!

Spring is near, flowers are blooming and the real estate market is booming. Your goals are budding, but could be blossoming if you act quickly and with a plan. Don't wait too long to invest in real estate as properties are being rapidly picked like flowers in a field. I've even seen properties go on market and within hours, sometimes minutes, have several showing requests and then within a day, sometimes the same day, have offers on the table. Buyers are competing with others in multiple offer situations setting up a nail biting experience reminiscent of a photo finish horse race. So how do you spring ahead of the competition? By having a plan of action in place right now...like today! Define your goals, know the areas you're interested in, type of properties you want and the price range you can comfortably afford. For investors, knowing the areas that provide you cash flow with the best return on your investment is crucial. Comparing those properties and running your numbers to ensure feasibility is essential towards realizing financial security. Most importantly, have your finances in order and determine how you plan on purchasing a property...."Will you Paying by Cash or Credit?" In other words, if you are financing, have you figured out what type of financing you are using, have you talked to Lenders, gotten a pre-approval? Spring fever is in full tilt and the market is infected with frenzy. Are you ready to enter the spring real estate market?

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   So I've heard that a goal without a plan is just a wish. Now is the time to define your goals. I think all of us delay doing some things for one reason or another, and sometimes it makes good sense do so so. But with real estate, if you have your goals set, you must be confident and take the plunge now. But not just with any kind of real estate, one that works for you and is a sound investment. So take a look at your current situation and define your goals as they can be different for everyone. Make your lists of pros and cons. When the pros outweigh the cons, you're ready to take a hard look at specifics like determining what areas you are interested in.
   

   

   You've heard that it's location...location...location, and that's very true. So I often ask buyers....What areas are you interested in? Here in Pittsburgh, PA neighborhoods can be tricky as the specs change street by street. Some areas are cash flowing, others are not. Some neighborhoods have or are going through a revitalization and others look like a ghost town. If you're planning on buying a home to live in, this means looking at the locale and amenities it includes such as: Schools, proximity to work and after work/school activities, shopping, entertainment, social amenities, etc. If you're an investor, most likely you want a property that will rent for a good price, with stable tenants who pay on time and help you to meet and exceed your expenditures. We're not just considering cash flow, but good returns and quite possibly in an area where resale is strong for the future. As far as personal preferences, some like a bustling urban feel with a lot of restaurants, nightclubs, sports and entertainment venues along with professional buildings. Others feel comfortable in a more laid back suburban feel that's still close enough to the city. And still others like the open rural feel. So do you adore a penthouse view or land spreading out far and wide? All are great options, but choose one that fits your interests and get to know the areas that meet that criteria. I can't stress enough that thorough research is needed here. This might mean talking with a real estate professional that specializes in your area. There's no commitment in just talking with someone until you choose to hire them to help.
   
   So now you know the area you are interested in, what kind of property are you looking for?
   

   

   There are countless types of real estate. So determine which type you are looking for. Is it residential, investment property, commercial or something else? Are you looking for a single family or multi-family property, commercial or just land? How large of a building, size of lot, room sizes, number/kinds of rooms and amenities? What's on your "must have" versus your "wish lists". If you are investing are you looking for "buy and hold" "fix & flip" "full/partial remodel" "move-in ready" "distressed" or something else? These are just some of the many questions to ponder, but doing so helps you find those properties in the areas you have already determined work for you. To many, most importantly, is the price range. How much are you looking to spend and are you flexible on that? This is often determined by your current financial situation including your present income versus debt. And are you paying by cash or financing?
   

   

   Cash is king and in my experience, unless it's a very low offer, wins out on multiple bid situations. But most of us don't have the good fortune of being able to pay for real estate solely with cash, so we choose financing instead. If you are going that route, the single best thing you can do is get a pre-approval right now before you start looking. The worst thing to happen to buyers is to see a property you fall in love with, or the deal of a lifetime, only to not have the ability to pay for it or act on it right away. So talk to a Lender and get that pre-approval. By now, most of us have heard that commercial where the Realtor says "There are multiples on the table, 1 is cash, 3 are FHA, 1 is VA so what can you do?" Understanding the type of loan you qualify for, including the terms, the advantages and the limitations are extremely important. There are a host of loans along with a plethora of lender types so it's crucial to read agreements carefully, especially the fine print. Does the price of the property and the corresponding loan amount work within your budget? Do you have some wiggle room for the unforeseen? While investors analyze many financial calculations to determine an investments feasibility, a residential home buyer still needs to look at their budget to ensure they are not biting off more than they can chew. But you've got this!
   

   

   So I've talked about buying property in the spring real estate market, but what about selling? If you're thinking of selling your home or investment property, get it show ready now by doing some spring cleaning. And I'm not just talking the inside. As great as it is to clean and declutter the inside, you can't neglect the outside. I often talk about the importance of curb appeal so start with cleaning the yard, paint those shabby shutters, put out a couple of pots of spring flowers and throw out the welcome mat. First impressions mean everything! And that goes for investment properties, too. No one wants to see a dumpy duplex. You would be amazed at how many people are unable to look past the cosmetic shortcomings to see a diamond in the rough. So don't cloud their vision--brighten it, make it eye appealing and make it stand out from the competition, inside and out. By making your home or investment property "Best in Show" you have a chance of selling it faster and for more money. And speaking of making money, now is the perfect time to look at your investments.
   

   

   Are your investments paying off or draining your bank account? Whether you have one investment property or multiple ones, it's always best to periodically analyze them to see if they are still giving you that great return on your investment. If not, there are plenty of properties in the real estate sea, so don't be afraid to make a change. It may just be what someone else would want to take over and improve upon. The goals in real estate for both home and investment buyers/sellers are best reached with planning. So determine the effort and risk (and benefit!) you are willing to take. Ultimately you want investments that will provide equity with a positive financial return.
   

   

   So, with warmer weather, flowers blooming, freshness in the air and a renewed interest in getting outside and enjoying life, make real estate a part of that by springing into action now!!