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 despite 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 is the way that value in real estate holdings tends to creep slowly upwards instead of moving smoothly towards profit over a shorter period. 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 investing in homes during a market slowdown should be to help increase the value of 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 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.