If there was ever a time to buy real estate it’s now - with winter approaching & the market slow, there are many homes, condos & residential income properties out there that are incredible deals!
Many homes in wonderful neighborhoods are priced way under market assessment. Part of the reason is the time of year. Fall is traditionally as big of a season for real estate as spring. Many homes have been on the market since spring/early summer — prices have dropped dramatically because there has been little activity. Many sellers have already moved & are carrying 2 mortgages. If you are thinking of buying, there couldn’t be a more perfect time! Motivated sellers are out there and buyers are hard to come by which means most sellers are willing to look at all offers & negotiate.
On average there are 7 homes for sale in Madison per 1 buyer! This means buyers can be picky. If your home isn’t in tip-top shape with many desirable features - it HAS to be priced right to sell in this market so a buyer is willing to take the burden of the updates required, or quite simply, it needs to be fixed up & sold at the same price listed at now.
On average, Madison home prices increase 7-12% per year. If you purchased a home for $300,000, that is assessed at $325,000- you’ve already made $25,000. Add 12% increase year-over-year & you’ve landed yourself a nice investment. Of course when you sell & the value of the property & what buyers are willing to pay will always determine the price you’ll receive.
Who should take advantage of these great deals:
-Those with extra cash to invest - the market will swing back up & you’ll get a nice return
-Those looking to diversify their investments - owning a property could be the biggest investment you’ll ever make & quite possibly the biggest return.
-Freshman students. Starting to look for a place to live next year? Your parents should consider an income property- which they can sell when you graduate in 3 years & make a nice profit to pay back college expenses! If you are planning to rent for 3 years, that is 36 months x $500 in rent, that is $18,000 going towards nothing when it could be going towards an investment.
-Those renting - yes, you have to have a down-payment to purchase & many renters do not have 10-20% to put down, but their are many available mortgage options that require much less than 10% down. In fact, it is quite common to have 3-5% down these days. The idea is your “monthly rent” is going towards an investment - not just in your landlords pocket.
-Those looking to purchase a second home. Looking to retire to Madison? There couldn’t be a more perfect time to buy ! There are many homes in wonderful areas of town that just need a little love. If you purchase now, you’ll not only get a great price, but have time to fix it up to be move-in ready by the time you retire.
-Those currently living in a place they could rent easily, like a condo-many first time home buyers are living in condos - they’ve been there for 2 years or more & space is running out! They’d like a home, but it’s not the ideal market to sell a condo. There is an option: rent your condo (if approved by your association) & purchase a home that is a good investment. Then, when the market swings up put your condo on the market.
-Those who like to fix-up homes -if you are handy it is a great time to buy a home to fix-up & turn it when the spring market hits. Buyers are looking for sparking kitchens, new baths & a great location. Homes that have these features that are priced right are selling. If you have the talent/skills to fix-up a place without having to outsource the work, you’ll get a great return for your investment next spring. There are numerous places in Madison in great locations just needing a little love.