In the ever-evolving real estate market, it seems like there’s a new headline or market shift every month. Tax policies, interest rates, and recession fears can easily distract both buyers and sellers. However, for those looking to make real estate deals happen, it’s crucial to cut through the noise and focus on effective strategies. Katie LeGrand, an advisor, shares her top three strategies for getting deals done in this dynamic market.
Get off “the sidelines”
Many investors find themselves “on the sidelines” due to the uncertainty in the market. They might base their decisions solely on headlines, concluding that it’s not the right time to buy or sell. However, I emphasize that some of the best deals can materialize during periods of uncertainty. Sellers who have owned properties for decades might not fully grasp their current value. Factors like location, market rents, and low inventory significantly impact a property’s value, not just interest rates.
According to a report by the National Association of Realtors (NAR), during periods of economic uncertainty, property values tend to remain relatively stable in desirable areas. The location and demand for housing can often outweigh fluctuations in interest rates or economic conditions. Additionally, research from Zillow shows that low inventory levels can create a seller’s market, leading to higher prices and increased competition among buyers.
Seeking expert opinions from qualified multifamily brokers can reveal surprising opportunities. Buyers can become fatigued from analyzing numerous deals and may hesitate to make competitive offers. I suggest that many sellers understand their property’s reduced value when interest rates rise, making it essential for buyers to put their best foot forward and explore how sellers might respond to their offers.
Don’t listen to the noise
A valuable lesson I learned early in my career from Lee Kiser: “Don’t listen to the noise.” This advice emphasizes that while we can’t control external factors, we can control how they affect us. In the context of real estate deals, this means staying true to your proven investment strategy. Focus on building relationships and seek opportunities despite any market turbulence.
In a study published by the Urban Land Institute, researchers found that investors who adhered to a consistent strategy over the long term were more likely to achieve their financial goals. Staying committed to a well-thought-out plan can help investors weather market fluctuations and avoid knee-jerk reactions to temporary economic conditions.
Instead of becoming discouraged, concentrate on the potential that each conversation holds. Whether you’re a buyer or seller, consult trusted and realistic experts before making decisions. Expert opinions can provide clarity and help you navigate challenging market conditions.
Let the past be the past
The real estate market evolves just like any other industry. While it’s common to reminisce about “the good old days” when prices were significantly lower, it’s essential to adapt to the current market reality. Similar to the cost of beer, which used to be a nickel but has evolved over time. Similarly, real estate values change, and today’s prices should be seen as a positive outcome of owning Chicago real estate.
According to historical data from the Case-Shiller Home Price Index, real estate values have generally appreciated over the long term. This suggests that holding onto property investments can lead to significant gains over time, even if prices have increased since the “good old days.”
Consider shifting your investment strategy to align with the present market conditions. Don’t dwell on past prices; focus on the present and the potential for future improvements when interest rates inevitably fluctuate.
In today’s market, there’s no shortage of talk about unrealistic sellers, but buyers can be just as hesitant. Fear is the biggest obstacle to overcome. Once you push past that fear and stay committed to your strategy, opportunities await in the real estate market. Remember: “Don’t listen to the noise.” Embrace the present, seek expert opinions, and stay resilient in your pursuit of successful real estate deals.