Brevard County is a Seller's Market – But You Can Still Invest
Posted: July 14th, 2022
Space Coast Homes are Moving Quickly
While there are signs that the Brevard County housing market is slowing down from its breakneck speed of the past few years, buyers are still snatching available homes at record speeds. By 2021, the median days on market for Brevard County homes dropped to a meager 35 days; although that number has since increased, interested buyers still need to move quickly when they find a home that suits their needs.
In conditions like these, it may seem nearly impossible to start investing in real estate, especially for a first-time investor. Brevard County continues to increase its appeal to new residents and investors from around the world with its strong job market and access to world-class amenities. However, the people who chose to wait in 2021 for the market to cool in 2022 were largely disappointed, showing us once again that it can take unexpected turns. It’s better to start learning purchase techniques than to wait for a price reduction that may not come for a while.
Success Requires Preparation
Most of the work you need to do to successfully secure an investment property in Brevard County’s current market comes in the preparation phase. Here are a few of the things you should do before you start your search:
Determine the Type and Condition of Your Ideal Property
Don’t go into investing without a goal in mind. Are you flipping the home or looking for long-term renters? Do you want to find a turnkey investment opportunity that doesn’t need much fixing before renters arrive, or would you rather find a property at a low price point that needs a full renovation? The answer to these questions will help you determine what type of property to search for (apartment, condominium, single family home, etc.) as well as how much you should prepare to pay.
Get Pre-Approval
Speaking of payments, getting pre-approval for a loan is one of the most important first steps you can take. Sellers want to close quickly, so you’ll need to make an offer as soon as possible after seeing a property you like. Speak to a lender before you start your search to determine your buying power and to give sellers proof of funding. Cash deals are also preferred by many sellers, but with prices currently high, that may not be feasible for everyone.
Develop a Relationship with a Real Estate Agent
When you work with a real estate agent, you gain access to all of the connections they’ve built over the years. A trusted Realtor can help you find out about homes before they hit the market and negotiate the best prices for your budget. Think about it: any Realtor you choose to work with has been navigating this complicated market since before these conditions even came about, so they have firsthand knowledge of what works and what doesn’t.
Make Your Offer Simple and Straightforward
Your initial offer will make an impression on the seller: it will let them know whether you’re serious about your purchase or not. Making an attractive offer in a seller's market is a delicate balancing act. You need to offer a price that is competitive, but doesn’t leave you overpaying; you need to make an attractive down payment; and you should try to agree to the seller’s terms as much as possible. Be sure to limit your contingencies and opt for a quick close. The real estate expert you partner with will help you craft an offer that will catch the seller’s attention but still protect your interests.
Don’t Fixate on the First House You Like
In current market conditions, even if you follow all the advice you can find, there’s always a chance someone else will make a better offer than you. Don’t get too attached to any house you like until the buyer accepts your offer – that kind of emotional investment can be exhausting and may wind up discouraging you from continuing your search. You can always see if the sellers are accepting backup offers in case the initial offer falls through, but keep an open mind and keep your eyes open for subsequent investment opportunities that come your way.
Brevard County Property is a Great Investment
Homes on the Space Coast will continue to be in demand for the foreseeable future, according to many real estate experts. With statewide job growth increasing by 5.4% from January to September 2021, Florida continues to attract new residents from all around the world. Beyond work, the Space Coast keeps residents close to beautiful beaches, world-class attractions, and the best that coastal living can offer.
Investing in property in a seller’s market may come with its challenges, but it’s still possible – and still a good choice. A reputable real estate agent can help you craft an offer that will push you through to the signing table. If you’re ready to find your next investment, call Ellingson Properties at 321-750-7050 today.