It is a seller’s market.
This is the consensus among most real estate agents. Even if interest rates continue to rise, they may not impact real estate sales as much as one might expect, as they remain relatively low compared to historic highs. Meanwhile, lending requirements for homeowners have loosened slightly, making now the time for savvy investors to flip those homes and turn a fast profit.
We spoke to handful of experts about the state of the 2017 real estate industry. From rising interest rates to new technology, investors have much to contend with this year—and beyond. Read on as real estate professionals share their thoughts, tips, and predictions to help you make the most of your investment business.
Rentals Are Hot in Central Florida
“In Central Florida, I am seeing an increase in demand for rental properties. The investors who were once flipping homes are now buying properties to hold as investment opportunities to rent out and then sell at a later time. Flipped homes are still desirable to an investor but there are less to pick from and many times these fixer-uppers have multiple offers due to lack of inventory.”
– Melissa Stalzer, The CornerStone Group, Orange City, FL
Time to Buy and Hold for Rental Profits
“Initially, rising interest rates could cause markets across the country to become even stronger as current renters on the fence about buying could jump into the market now rather than waiting. From a longer term perspective, rising interest rates are worth watching… On the one hand, higher interest rates could lead to fewer buyers in the market. On the other hand, it can also make renting a home a more viable option for some folks. This could cause a change in thinking for those investors who have been doing more flipping than a buy and hold strategy.”
– Bill Gassett, RE/MAX Executive Realty, Hopkinton, MA
Low Inventory and Loosened Lending Requirements Help Buyers and Sellers
“Inventory is extremely low, almost across the United States. They’re starting to loosen up with the mortgage approval process, but not in a negative way. So even though it’s a seller’s market, things are good for buyers, too. The trend is obviously toward the internet and social media. People are looking on Zillow, Trulia, Realtor.com—the usual sites. But people still look for the personal touch of an agent who knows the area. And you do find pockets of communities where people still read the newspapers to look for homes.”
– Michael Kalagassy, Century 21 Mack Morris-Iris Lurie, Morganville, NJ
Investors Can Cash in on Move-in Ready Properties for Millennials
“As interest rates rise, buyers may be a little more cautious with their money. But right now, interest rates are still low enough that people are willing to buy. Everyone is scrambling for the same plot of land, and we do have limited inventory. The millennials are finally done paying off their student loans, they’re in stable jobs, and they’re finally venturing into homeownership. So, we have the baby boomers downsizing, the millennials buying, and everyone is looking for the same kind of house…. The benefit to the flipper or investor is that these buyers are looking for something that is move-in ready, maybe a little larger than a starter home.”
– Amy Zimmer, Associate Broker, Hall and Hunter Realtors, Birmingham, MI
Act Fast When You Find a Good Fix and Flip Home
“It is a seller’s market right now. We are very low on inventory. I have people in line waiting to buy, and I cannot find them anything. There is no such thing as scheduling an appointment Wednesday to see a house on Sunday. It will be gone. As an investor, you are going to make money if you sell right now… It is also worth it to invest for long-term rentals. Many of the communities in the Atlanta area have maxed out the capacity of rentals allowed, which is normally 20 percent. But others are still available and may be renting at a higher rate these days. There are also some communities that are looking to renovate and revitalize, which represent good opportunities for investors.”
– Susi Yarbrough-Salhaney, OpenHouseAtlanta Real Estate Group, Atlanta, GA
Know Where to Look for Opportunities
“There are fewer foreclosures out there, and not a lot of flipping opportunities. Now that interest rates are going up, along with home prices, it is harder for investors to find the great deals. Investors have to really do their research, even prior to the homes coming on the market, to find homes with a tax lien, someone in pre-foreclosure, or a short sale. Investors can use social media to get insight as to what is coming on the market. They can use targeted Facebook advertising to find people interested in buying or selling. However, they also need to have people out there searching for properties on a daily basis.”
– Michael Aharoni, Magnificent Homes, Broker/Owner, Great Neck, NY
The bottom line? Act fast when you find a deal. Homes are going for well over the asking price. Seek rentals in up-and-coming areas, and use every tool available to find the right buyers or tenants for your top properties.
Don’t Miss Out on Today’s Best Deals!
Get funding fast with 5 Arch…