How You Thrive as a Homebuyer in a Slower and Shifting Market

Today, we're going to talk about how to thrive in a shifting market. Hello, this is David Xie with the Xie Mortgage Team. If you haven't looked out there recently, the market is definitely shifting and there's a lot of different changes. Not only did we go through a lot in the last couple years, but now we're dealing with other issues such as people wanting to get back to work, the rates going up, value going up on houses, and it's going to cause a lot of panic.

The market is definitely getting less competitive. We're seeing a lot more price reductions in real estate. We're having less showings on real estate properties. Less houses are hitting the market because if they sell their house, what happens? They're getting out of a lower interest rate because everyone took advantage of refinancing and if they buy right now, it's going to be a higher interest rate.

The key is to basically know the economy and know your market specific because every market reacts differently. Some may react faster, some may react less. Even when you look at a market such as a Los Angeles, there are certain areas that are going to have still price increases. Whereas there are certain areas where it's not as desirable, so there are price decreases. You got to know your market.

I think one of the most important thing is if you're going to work with a real estate agent is to find a real estate agent that's an educator. Someone that's going to let you know about the market, let you know why you want to invest in that market, not a salesperson.

So you don't want to listen to the gossip, and the gossip is the news. Everything that's going on in the news, you got a lot of talking heads that are out there, they tell you what you kind of want to hear. And one of the things about working with a real estate agent that is familiar with the local market that you want to either invest in or live in, is you want to look for different things.

You want to look for different schools that are going to be desirable. Something that you can sell in the future. You want to then look at different activities that are around. If you're a younger person, like our, our lives constantly change. When I was younger, I kind of wanted to live in the city. I wanted to go out.

I wanted to be able to walk down the street and go to a coffee shop or maybe even a bar. However, as I've gotten older, and I have school aged children, I'm looking for different school districts because that's what is the most important thing to me. As I work at different places, then I'm looking at the commute.

Especially with gas prices now, we want to see how far the commute is from where you live to where you work. So that should be something that helps you make a decision on what you should buy in a shifting market. Because the long and the short of it is you do not want to be stuck in a property when you want to sell it.

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Depending on your financial situation, if you sell it, you want to be able to get good money for it. And I can tell you one thing, you can never time the market. If you want to keep it as an investment, you would want to make sure that it does have those desirable things. Someone that is looking to rent is going to want to rent in those areas.

There's so much data and analytics out there with Zillow, Redfin, and all these other platforms out there. I'd highly recommend that you go through there and educate yourself once again. In this shifting market, it's really important to educate yourself.

Some of the other things that you really want to know is the bottom line: is you got to decide whether you want equity, you want cash flow. You also want to take advantage of different things at different points of your life, such as look at the real estate trends. Like glamping sites are really huge. What glamping is, it's like camping, but living in something that's extremely fabulous, like a TP or a geo dome, a-frame, a property.

You want to see what your advantages and disadvantages are of purchasing a house with a accessory dwelling unit. That is a house with maybe a separate in-law suite or maybe even a separate unit. You want to know about the financing terms on something like that. You also want to look at multi-family units, such as duplexes, triplexes, quadplexes because you do get advantages, especially with FHA when you're financing those multi-family units.

You can live in one unit and you can rent out the other units, and a lot of times that'll pay for your mortgage plus some. You want to know about your rehab product. So recently I purchased a home that was a two bedroom, one bath house. We turned that into a three bedroom, two bath house. And doing that transformation increased my rent intake from 1200 to $1,700 a month.

So that's $500 a week, which is $6,000 a year. And in turn, what that does is my $10,000 rehab will be paid off in a little over a year and less than two years. If you have any questions on how to leverage and thrive in this market, feel free to give me a call. My name is David Xie and I'm with the Xie Mortgage Team. I can be reached at (757)-478-8493.

Please be sure to like this video, subscribe to our channel because we've got a lot of great information from a lot of great professionals. Be sure to click the notification bell because whenever we release one of my videos or any of the network professionals, we'd like for you to know about it. All right. I'll talk to you later. Bye.