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Knowing the Right Time to Buy or Sell a Home

In the investment business, timing is key! Knowing the right time to buy and sell will get you the returns you want on your investment. In the real estate business, this is also a very important skill. Buying or selling the property at the right time, with the right mortgage plan, will fetch you a lot of money.

Even though this skill comes with experience, we have gathered some really great steps to help you get started on a path of success and wealth.

Selecting the Best Mortgage Option

If you have a high enough credit score, you can get a pretty sweet mortgage deal. Although there are plenty of plans out there, many people in real estate propose a 30-year fixed mortgage plan. The interest rate will be higher than the 15-year plan, which may be perfect if you have any plans for refinancing. In addition, a 30-year fixed plan can safeguard you from many ups and downs in the market.

If you do not want to get in this plan, then many have suggested a prime rate mortgage, a sub-prime mortgage, or an Alt-A mortgage. Prime Rate Mortgage may be best for those investors who want to save themselves from paying thousands of dollars in interest over the years. The only downside is that you will have to pay a huge down payment.

Sub-Prime mortgages may also be more suited for investors having a low FICO credit score. These mortgages can have a huge interest rate. Sometimes around 8-10 percent, depending on the lender. Nevertheless, and also depending on your financial situation, we highly recommend speaking with a financial advisor and a mortgage broker to determine what may be best for you.

Keeping an Eye on the Market

We all know how much the real estate industry fluctuates. Its stability depends on various factors; some of them have no direct relationship with the property. You have to capitalize on this phenomenon to get the maximum profit out of your property.

Keep reading various business magazines and real estate journals on top of prices and rates in your locality. According to our survey, real estate properties are at their peaks when schools are off as families like to move in before the school semester starts.

These seasonal factors can contribute greatly in getting your timing right.

Buyers get Ready! Winter is Coming!

For buyers, winter is the best time to invest in a house. During that time, there are a lot of houses on the market and a few sellers. You can leverage that opportunity to get the house of your dreams at the best rate possible.

Summer is for Selling!

It is statistically proven that houses sell faster and at a higher margin during the summers. During this time, buyers are actively looking for new houses. Therefore, if you want to make a quick and a hefty buck, the first few weeks are key. Many sellers try to sell their property as quickly as possible to avoid the property from sitting on the market for a prolonged period.