How are you feeling about the current Nashville real estate market?
We’ve had some ups and downs, and the last few years have been mildly crazy. Even as things begin to settle down and balance themselves, the Nashville real estate market remains competitive and attractive to investors from all over the world.
Wherever you happen to find yourself now – buying, selling, renovating, or simply re-evaluating, we want to help you stay up-to-date on how things look and where things are going.
We want to help you succeed in a competitive real estate market.
This is part of the service we provide as Nashville property managers. It’s our job, as industry experts and local leaders, to help you position yourself for the best – and most profitable – outcomes possible.
Succeeding in a competitive real estate market requires a combination of things. You’ll have to be patient. You’ll have to remain focused. You’ll have to partner with experts who can bring you the tools, resources, and technology that you may not be able to access yourself.
Here’s how to do it.
Educate Yourself on the Nashville Rental and Real Estate Markets
You can’t succeed in the competitive Nashville real estate market if you’re not willing to educate yourself on what’s happening with inventory, pricing, and competition. You can research the market trends and watch the movement of interest rates, housing prices, and vacancy rates. Pay attention. This will help you make better investment decisions and also avoid surprises when you’re ready to buy, sell, or turn a property over.
Talk to the local Realtors you know and get market insights from property management leaders in Nashville. This will give you a solid understanding of the current market and how it’s performing. You can also use predictive analytics to tell you where things might be moving and how factors may be shifting in the coming weeks and months.
Be detailed and get to know the neighborhoods. Dive into the tenant demographics. Know where tenants want to live, where homes are in high demand, and what kind of new construction is planned for the city where you want to buy a property.
Cultivate Relationships with Local Experts
We love working with investors, whether they’re new to Nashville real estate or building an impressive portfolio of properties. With a strong professional network, you’ll find yourself staying ahead of the competition and more likely to succeed with your properties.
Develop contacts within the industry, including:
- Real estate agents
- Property managers
- Insurance professionals
We can tell you that while all of these relationships are critical, your property management partner is perhaps your most important resource when you’re buying an investment property in a competitive market. Not only can we tell you whether tenants are likely to find the property you plan to buy worth renting, but we can also tell you how much rent you can expect to earn. Property managers can talk to you about the improvements and upgrades that are likely to increase your rental value and attract the best tenants. You’ll get an idea about how much maintenance you should budget for year to year.
The drive towards DIY is strong. But, to succeed in a competitive market, you’ll need to resist the urge to do everything yourself. Put your relationships and your network to work for you.
Competition Drives Action: Be Prepared to Make an Offer
Competitive markets don’t give you the luxury of thinking about things for too long.
It will help if you’re proactive in your search and you have a clear investment strategy in place. Review the properties for sale, visit auctions, and be quick to respond to potential deals. Building a reputation for being a fast and reliable buyer can help you close the deals you’re hoping to finalize. You’ll need to have everything in order so you can make an offer and walk away with what you want.
Part of being ready to move when the right opportunity presents itself means having your money ready.
Real estate investments require capital, and if you don’t have it immediately available, figure out the financing so you can move quickly to make an offer and close the deal. You’ll need a detailed budget and enough funding to cover potential costs. Keep your credit score high, because when you need to borrow money, lenders will look at it. Build relationships with lenders who can provide you with fast financing options.
Cash offers are always welcome, especially in a competitive real estate market. We usually recommend that you leverage your investment purchase, but with things moving so quickly and inflation pushing mortgage rates higher and higher, paying for an investment in cash is not a bad idea.
Invest in the Right Rental Property
There are a lot of opportunities in the Nashville real estate market, and you don’t want to buy up properties just because they’re available. It’s better to be strategic, especially if you want to be successful.
The right property for you will depend on your investment goals. You’ll have to think about whether you’re prioritizing cash flow or appreciation. Do you want a property you can rent out in a week or two, or are you comfortable making renovations with a fixer-upper?
Consult your investment goals and let those lead the way.
If you’re planning to invest right now or in the near future, you’ll want to keep an eye on how things continue to develop. There’s a lot of growth and a lot of positive energy. This is a great area for rental properties that investors are planning to hold for the long term, and anyone who buys a rental property here or builds a real estate portfolio with Nashville investments will find they have a good chance at success.
Succeeding in a competitive real estate market is not difficult, as long as you’re willing to invest in exploring the market, prepared to move when it’s time to make an offer, and surrounded by smart professionals who know how to help.
If you’d like to talk with us about your investment goals and how to succeed in this market or any market, we’d love to hear from you. Please contact us at Omni Realtors & Property Management.