It’s quite intimidating to walk through fast-moving waters willingly without a steady footing. The Philadelphia real estate market may appear just as intimidating at first glance. However, you do not have to get knocked over by the currents. Knowing where to start and taking care with each step of the way can get you across the quickly flowing stream of investing in Philadelphia real estate today.
Read on to discover the five things you should know about the crazy real estate market in Philadelphia.
You should focus on the location and property type best suited to create a well-rounded real estate investment portfolio while you navigate the crazy real estate market in Philadelphia. Building a diversified portfolio is easier to achieve when you make your investment strategy because you can focus on areas of the market that best suit your goals. Just as important as the type of property you select is the location. While buildings can be improved or rebuilt, you simply cannot pick up a piece of land and move it to a site that better suits your needs. So instead of buying the best property in a lower-valued area of Philadelphia, consider investing in the lowest priced property in a better location.
Sleeping on a decision might not be the best plan in the crazy real estate market in Philadelphia when a great deal comes to your attention. Instead, you should have your financing ducks all lined up and in their rows, ready to move at lightning speed. But, unfortunately, when it comes to the fast-paced transactions that are now possible in a world of advanced technology, twenty-four hours can mean the sale has already closed. You may be window-shopping because you are looking at properties that are not in your budget. By having financing pre-arranged, you can be in the right place at the right time.
The Other Guy
Just focus on your own business and do not worry about what other buyers may or may not do; this is just a rabbit hole of distraction from the crazy real estate market in Philadelphia, so keep your focus on what you can control instead. Making the right offer necessitates knowing the formulas that professional investors use to assess the return like the back of your hand quickly. What other investors do cannot be of concern. It is easy for buyers like you to get caught up in the excitement of a bidding war or find a property you have fallen in love with, so having a checklist and a minimum return on investments as a guide can help you avoid the pitfall of emotional buying.
You have got to get your first offer right in the crazy real estate market in Philadelphia because it is highly likely you will not get a second chance. However, you can be confident that now is not the time to play the game of bidding low and hope for counteroffers. Running the numbers to calculate the return you can realize on the investment before making a bid will allow you to start with an offer for the highest amount possible while staying within budget. If possible, be ready to submit a tidy sum as a deposit along with your offer to show the sellers you are in it to win it. Another way to make a great impression is to bypass as many of the standard contingencies as possible. You could even offer to work with the buyers on their move-out date if they’re facing delays in moving into their next home.
Work with Pros
While many life lessons are trials we must go through on our own, the crazy real estate market in Philadelphia is not the place to figure it out for yourself. Instead, professional investors understand the importance of performing due diligence on the property. A professional will have built a team to move in on a potential deal to inspect and estimate the cost of any repairs and determine the current market value of a specific property. Years of experience have taught professional investors how important it is to maintain relationships and work with the best experts in every walk of the real estate industry, including the top Philadelphia construction pros. Having a system that you can follow when investing in real estate will help you feel confident with your offer. If a deal is not suitable for you, a professional will advise you that it is time to move on.
Philly Off-Market Deals can help you through the labyrinth that is the crazy real estate market in Philadelphia. With the Philly Off-Market Deals team of real estate professionals backing you, you can rely on their quick assessment of a property before you ever make an offer. Make Philly Off-Market Deals your team. Contact Philly Off-Market Deals today at (215) 322-1648.