It's Time To Buy

As the real estate market declines it has become increasingly easier for new investors to purchase property and experience increased positive cash flow. The reason for this is that property values have considerably dropped while rents have remained relatively stable. As a result, investors who purchase real estate today have the benefit of buying low and renting high. Between the 2000 and 2005 it was a strong sellers market in which investors purchased property for a high value and had to rent at a high rate. Thus the only thing that has changed between then and now is the fact that investors can purchase for far less and still charge relatively high rents. In summary, the expenses have decreased while revenues have remained the same.

Another key factor that contributes to this dynamic is the fact that mortgage rates are also still historically low. So between low property values and low interests rates, it is a win win situation. If you are in a position to buy real estate, this is the time to buy. As any savvy investor knows, buy low and sell high. The market may continue to slide but if you buy with the intent to hold you will always win. The only way to know when the market has bottomed out is when it starts to come back up. That being said, if you take advantage of the current market conditions, you will position yourself to build a significant amount of wealth when the market recovers.

Sharpbuyers.com will provide you with the tools to understand how to invest in real estate. The key is to set and understand the goals for every property that you purchase. We will help you come up with a timetable that enables you to reap the benefits of maximum month to month cash flow, and provide you with market condition reports that will help you better understand where properties values are trending. Thus you can thrive during turbulent market conditions because you are still experiencing positive returns, and sell when you decide the market will yield your ideal return on your investment in the property. In addition to this SharpBuyers.com provides all buyers with up to 50% of our commission in the form of a rebate on your real estate at closing.

Boston Real Estate Report By SharpBuyers.com

Boston Real Estate Report By SharpBuyers.com

As we enter into the slowest time of the year for real estate sales it is important to keep a closer eye on the market. This is why SharpBuyers.com is providing this vital report that gives consumers an in-depth look at the real estate market. There are several different ways this information can be utilized. For buyers, declining home prices may be an indication to wait until the market bottoms out before purchasing. The flip side of that philosophy is that the only way to know when the market has hit rock bottom is when it starts to come back up. Hence, you run the risk of missing out on great deals by trying to perfectly time the market. My advice, buy today with the intent to hold. Many investors forget that real estate is a long term investment due to the unprecedented property value appreciation that was the theme of the early twenty first century. Now it is time to get back to basics.
As a seller, attempting to sell in a declining market this time of year is a daunting task. Plain and simple, it can be down right demoralizing. But even in the midst of these tough circumstances, there are options. The first and most obvious option, don’t sell. If you can afford to make your mortgage payments it is probably best to hold until the Spring. The longer a property is listed on MLS the less the “perceived” value. I use the word perceived because nothing about your home changes to decrease the value but when a home lingers on the market buyers see it as additional leverage for negotiating a better price. In the winter there are less buyers looking to purchase real estate and as a result homes tend to sit longer on the market. So hold through the winter and list in the spring. This strategy will typically get you the optimal sales price for your home. It all goes back to supply and demand. Although the amount of homes on the market greatly increases, so does the amount of buyers, thus increased sales volume drives home prices up. If you absolutely must sell in a declining market and in the winter, the most effective strategy is to reduce the sales price. So how do you go about a price reduction? The first step is to talk to a real estate professional that understands the local market. Ask them to provide a CMA (Comparative Market Analysis) to determine the market value as well as a month to month market trend report. If the market is declining at a month to month rate of 2% you would want to get ahead of the trend and reduce your price by at least 3% - 4%. This enables you to price your home at a competitive price and attract more of the buyers that are currently in the market for real estate.

Boston Home Single Family Home Sales Data:
Single Home Sales:
December 07: Single Family Median Home Values: $332,500 Volume: 60 Homes Sold

This represents a -4.3% Decline in value from November 07 and a -9.6% Decline from December 2006. Volume is also down -25% and -38% respectively.