Finally, after a few years of rental rates going down due to the soft rental market, the market is turning. More tenants are calling on the ads and the demand is picking up. I have started to increasing my rental rates by about 5% and I’m still finding tenants that are happy to pay.
I know that many real estate agents will not like what I’m about to say, but here are the facts. The numbers of listings throughout most areas of the country have been rising rapidly. The average market time is much, much longer than a year ago and selling is becoming harder and harder. If you are a listing real estate agent, it is going to take you more of your skills to sell a home and you must price it right.
Now for the good news….as a buyer, you are a great position because it is getting harder to sell. Sellers must be more open to lower offers and creative financing. If they aren’t their properties will sit on the market for a long time and maybe won’t sell at all at this time.
So as a real estate investor, it the time to step up your prospecting and start looking for the sellers who are serious about selling. Make sure you run the numbers and don’t be afraid to offer what you think the property is worth, even if it is much lower than what the seller is asking.