Blog Stories How to buy correctly in a hot market

How to buy correctly in a hot market

By Kim Parmon, February 7, 2020

We’ve all heard the phrase “location, location, location.”  That’s the home buying gospel, right?  If you purchase property in the right location it’s going to have more value down the line.  Is that true?  In our crazy hot market how do you buy correctly and stay within budget?  I love first time homebuyers but I also look at all real estate purchases through an investment lens.  Even if you are planning on raising a family in your new home and staying there forever I still want to know that you are making a sound financial decision.  Based on my experience, here are some tips on your home purchase from the perspective of a REALTOR® who is also an investor:

  1. Avoid buying on a busy street.  I know that that house is “so inexpensive” compared to everything else in the neighborhood that you think you’re getting a good deal.  You’re excited because it’s been on the market for awhile and everything else is in multiple offers.  What happens when you go to sell, though?  You’ll be in the exact same position with a discounted list price and longer days on market.  If the house is perfect for you and you don’t mind the street it’s all good, just make sure you are prepared to take less than your neighbors in the future when you sell.
  2. Take on some projects.  You’d be amazed how many houses would be worth significantly more with some new flooring and fresh paint.  If you can look past minor cosmetic imperfections you can get a great home that you can build equity into.  Not someone who can see what’s possible?  Scared of how much it might cost you?  Find an agent who has the experience to help you polish that diamond in the rough.
  3. Buy just outside the hot neighborhood.  Everyone you know is really excited to be in that one hip location, right?  What happens when prices in that location reach a fever pitch?  The neighborhood next door usually gets the spillover and prices there start to increase.  Maybe the area doesn’t have as many trendy shops as you’d like but if you can hop on a bike and get to the cool spots that quieter location might be one to consider.
  4. Look past bad listing pictures.  It’s easy to fall in love with a home online before you ever tour it.  Conversely, it’s easy to scroll right past the property with the dark cellphone pictures and the cluttered presentation.  If every buyer does this you can bet there’s a lot less activity on what might be a perfectly good fit for you just because of the packaging.  It may not be love at first sight but keep an open mind.  If you can see past a poor presentation you may find your dream home for a great value.
  5. Understand that your first home doesn’t have to be your last home.  Almost every buyer wants to purchase their dream home right away but few people have the funds to make that happen.  If you can think about your first home as a stepping stone to where you want to get down the line it changes the game.  Purchase correctly and build equity.  Down the line you can tap into that equity to move up into the house you really want.

Happy house hunting!

 

Kim Parmon

Principal Broker | Earth Advantage Certified | OR

She/Her

Kim Parmon Principal Broker  Lead Listing Agent Earth Advantage Certified | OR kim@livingroomre.com Oregon is the fifth state that Kim has called home in her life, and this one is sticking!  After moving multiple times in her childhood, Kim fully understands how empowering homeownership and having roots is.  She loves waking up every day in this beautiful place and wants everyone to experience what it feels like to live in their dream home. As a kid, Kim spent her free time wandering through open houses and exploring construction sites for the fun of it.  After careers in the professional ballroom dance world, the entertainment industry, and the service industry, Kim stumbled into real estate as both a passion and a profession through the purchase of her first bungalow.  After renovating it with her husband and selling it for enough of a profit to pay off their debt as well as buy a new house to live in, everything clicked: she decided to get her real estate license and help her community experience the emotional and financial benefits of homeownership.  Kim put down roots in Portland in 2015 and has cultivated a referrals-based business throughout the years.  She understands that real estate is a service and the experience she gives her clients is first-rate.  She works hard to anticipate needs.  She is responsive, thorough, empathic, and a skilled negotiator who enjoys market analytics and strategy as much as she enjoys connecting with her clients.  Her ethics and reputation are the cornerstones of her business and the happiness of her clients is the yardstick that she measures success against. Kim merged her business with the best agents in Portland at the beginning of 2022, which has allowed her to give her clients more resources, more advocacy, and a top-notch real estate experience.  She is honored to be a part of her incredible team and feels lucky to go to work every day. In her free time, you'll find Kim enjoying lazy evenings by the fire with her husband, daughter, and rescue dogs.  She loves dancing, live music, exploring all of the beautiful places around us in the PNW, enjoying a cider and a good meal with friends, and browsing Powell's for a great new book. Andee Ziegler  Licensed Listing Team Operations Manager andee@livingroomre.com Loving where you live will change your life. Everyone deserves that joy. For me, real estate has been a way of nurturing my community and doing what I can to help people find stability, grow generational wealth, and create a little space of their own in the world. For 15 years I found the most joy in helping first-time homebuyers, guiding my peers through their first major investment and dreaming up what home means for them. I’ve done restoration work on homes from a variety of eras, 1894 Victorian farmhouse to classic 1950’s ranch. I enjoy empowering new homeowners with the knowledge I’ve garnered over the years, from systems to finishes.  In 2022 I joined forces with some of the best realtors in the biz and shifted my focus to operation management for listings. This welcome change opened up space in my life: more cake, less pants.   Andee Zeigler | Licensed Listing Team Operations Manager | andee@livingroomre.com Jessica LeDoux | Lead Buyer Agent | Broker Licensed in Oregon | jessica@livingroomre.com  Karim Alaeddine | Operations | Principal Broker Licensed in Oregon | karim@livingroomre.com  Jenessa VanZutphen | Buyer Operations Manager | Licensed in Oregon | jenessa@livingroomre.com 
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  • T: 503-438-5101
  • kim@livingroomre.com

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