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Overcoming Slowdowns in Tri Cities Washington Real Estate
Both real estate investors and real estate agents often see market slowdowns as a time when their jobs become truly challenging. Instead of succeeding in spite of marketing efforts done in a particular area, those efforts become amplified in their importance and start to take on real meaning in the difference between selling a property quickly or watching it sit on the market for months.
For real estate investors, one of the problems with a slow market becomes the way that value in real estate holdings tends to creep slowly upwards instead of moving smoothly towards profit over a shorter period of time. Waiting for a particular investment property to gain enough value through an upturn in the market can be excruciating in a slow market and many investors are simply not willing to hold on to a property that long.
Add Timeless Value
So, with all that said, the goal in investment homes during a market slowdown should be to help increase value in a property, independent of what the market is doing. Waiting for the real estate market to add value to the home can work in brisk markets, but we’re certainly not talking about a brisk market here. We’re talking about a market where the best way to add value quickly and independently of the market to the home is through fixing it up and selling it off.
The fixer-upper is a common investment technique used in all kinds of real estate markets, but one of the best uses for the technique is to produce gains in a slow market. Improvements will translate to home value directly and immediately when they are done. While a slow market can still elongate the process of getting rid of the property after repairs are made, it certainly beats waiting for the market to tick upwards for a potential profit.
Invest in Teflon-Improvements
There are certain types of improvements that are not affected by market downturns in terms of value. While secondary improvements like improved landscaping can turn a few more heads in a brisk market full of buyers looking to spend a little extra to get what they want, buyers in a slow market know that they have the power to spend a little less and still get what they want from a beleaguered seller.
The best way to avoid this kind of finicky buyer is to add value to a home that any buyer would appreciate. These improvements can include an updated kitchen with new appliances, an added bathroom, a finished basement and other common improvements that are likely to hit a wide demographic in their appeal. Everyone looks at the number of bedrooms and bathrooms before stepping foot in a home. If you can up a number like that, you have added direct value to your property with a wide appeal.
Tackle the Market Proactively
The nice aspect of a fixer-upper investment property is the proactive approach it represents, independent of whether the market is moving slowly or briskly. Adding value to a home via hard work and material improvements gives you a better footing instead of depending on the whims of the market. Use market slow-downs to improve your fixer-upper abilities as managing these types of projects is the foundation of investment efforts for many investors.
Clearly, a market slowdown can adversely affect both real estate agents and real estate investors alike, but taking additional steps to protect yourself against a slowdown by investing in real value can circumvent all of the negative aspects of a slowdown. While these moves will by no means completely wash a slowdown away, they will put your home in a value bracket it would not have been able to reach any other way.
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