The housing market is a robust upwards momentum market that has consistently gone up over the past. Of course, there’s been some ups and downs, even several crises sometimes, but it’s always recovered in the end. It’s not the same with stock markets, global markets, commodities markets, and the like.
Housing markets refer to houses and are considered assets, but at the same time are not as liquid as other types of assets. Due to this, it’s a bit harder to buy and sell due to their hefty price point. At the same time, they’re treated differently in the US and most places, as it’s not merely an investment but a place to live your life.
Therefore, there are specialized incentives to buying a home to live in or being a first-time homebuyer, instead of minimal incentives to purchasing stocks on the open market since the only motivation is the gain and return of the stock.
You cannot live in an investment, and thus the housing market plays this dual role of being a market while simultaneously being one of the fundamental human rights of shelter.
You need to be approved to own a home
In most cases, to own your first home, you need to be approved in some form or another. It’s the only instance where you’re able to borrow substantial amounts of money with relatively minimal collateral, except for the home itself, which you haven’t even begun to live in yet. So it’s necessary to be in a solid financial standing, with a history of timely payments, steady income, and other variables that come into play.
Yet that’s not the only way to be approved for a home. The other way is to simply accumulate the necessary funds to purchase the house and pay outright in cash. In the end, both methods can take time, and both ways are a form of approval. Still, in the future, those that have the liquidity of their own cash are able to be a lot more agile in their home buying and selling and are basically able to get into real estate through traditional means.
Give yourself an advantage
The housing market has regulation in a sense and is consistent compared to the other markets out there. That means you may want to do yourself a favor and understand how to get an edge the next time you want to buy or sell. However, as you know, this market is quite predictable and stable for the most part, so you can view it from the point of view of an investor first, homeowner second.
With this new information arming you, you’ll know immediately that the more liquid you are in this market, you’ll be able to beat out retail buyers every single time. That means you, yourself need to become an all-cash buyer, and the best way to do that is to sell your current home, with all of its accumulated wealth, in an all-cash offer.
It’ll give you the know-how of how it works, and once you see how smooth and effective the process is, you’ll wonder why you ever got a mortgage in the first place. A whole different subset of the housing market will open up, and you won’t have to go through a long process any more of all those bank approvals, escrows, and looking and setting up buyers.
Have your cake and eat it too
Remember to get to this stage; you’ll need to liquidate yourself. That means since you were already looking to sell your home, be a part of the faster process and go only for all-cash offers. You may, at times, get a double dose of shock. The first is when the pricing might be slightly different from the market price.
At the same time as this, you’ll notice you don’t need to prepare your home for ready-to-move-in, as these are experienced and motivated buyers, who when they offer you all-cash deals. Ultimately, they want the home as-is, and they wanted it yesterday.
These buyers are familiar with how housing works, what your market looks like and understand that the pricing will only go up in the long run. That means they’re willing to reinvest into properties to get them up to a certain level without leaving that responsibility to you. So enjoy this new method of buying and selling houses, and you can thank yourself later.