In 2018, the typical house was only on the market three weeks before a sale, reports the NAR’s Profile of Home Buyers and Sellers. In cities like San Jose, San Francisco, Seattle, and Salt Lake City, more than half the homes sold for above asking price in 2017. This hot seller’s market isn’t set to shift in 2019, according to experts. Fewer homes, higher rent prices that may encourage those on the fence to buy instead of rent, and slowly-rising interest rates create the perfect storm for the best homes to vanish quickly.
However, savvy investors have more tools than ever to secure the best properties at the right prices. Employ these tricks of the trade to close more quickly and with certainty that you are making the right move in a fast-paced market.
1. Leverage Technology to Determine if a Property Is a Good Deal
Big data already drives many business decisions in the corporate sector, but data-driven investing is only recently gaining a stronghold amongst seasoned real estate investors. Apps like HouseCanary offer predictive market analytics, letting investors know if a house has the fix and flip or rental potential you believe it does. Using an advanced software engine, the program can provide condition-informed valuation reports in minutes, enabling investors to make a smart decision faster.
DealCheck is a similar app that helps investors calculate the ROI on any given property when factoring in their rehab budget, closing costs, and more. In today’s market, if you spend too much time analyzing a deal before purchase, the property could be gone by the time you make up your mind. Today’s software can give investors the edge.
2. Employ All Channels to Find the Best Properties
Why not use technology to help you find those “hidden gem” properties other investors may not know about, and even properties that aren’t on the market? Apps like DealMachine are digital “bird dogs” that live in your smartphone, designed to help you vet the best opportunities in a neighborhood. DealMachine, for instance, allows you to snap a picture of a property, and use the app’s search engine to find the owner’s contact information and automatically email the owner an offer directly from your phone.
Of course, hiring property scouts to travel the hottest neighborhoods is still a cost-effective way to spot profitable properties. Bird dogs are often future investors looking to learn the ropes from a more experienced professional. Arm your real-life “bird dog” with the right technology and you will be well-equipped to spot the best prospects in a neighborhood faster than competitors.
3. Be Ready to Close Quickly with Fast Financing
Being the first to bid on a property can give you a tremendous advantage if the seller is ready to move. But if you’re outbid before you close—or another buyer walks in with cash—your fix and flip attempt could fail.
By working with a private lender like 5arch, you will enjoy fast and consistent closings to get the funding you need for your next investment. 5arch offers unparalleled customer support, along with a RateMatch℠ program that promises you’re getting the best deal, which is exactly what investors need in a fast-moving seller’s market.