Do you know what makes purchasing real estate in Fargo ND challenging even for experienced property buyers? Thanks to easy access to information in this age of technology, it doesn’t take a lot of brains or experience to get familiar with the real estate transaction process. The real challenge lies in the fact that the market trends keep on changing and the government introduces new taxes and regulations from time to time. These ever evolving market trends force even the most experienced real estate investors to come out of their comfort zone and learn new things every day.
If you are planning to buy real estate in Fargo ND in 2018, here are four most important considerations you need to make:
Republican tax reform
The proposed GDP tax reform can affect your home buying experience in 2018. The tax reform doesn’t make much difference as far as affordable housing markets such as North Dakota are concerned. It will definitely impact homeowners in affluent parts of the US such as California, New York and Hawaii.
The new tax bill lowers the mortgage interest deduction to $750,000 from $1 million. That cap applies to all homes. So if you are buying a second home, you may not be able to take advantage of tax deductions. In a study, Zillow found that the portion of homes eligible for deduction would fall to 14.4 percent. The $1 million limit will remain for homes that were purchased before December 15. If you are buying a smaller home in a not-very-costly housing market, the bill won’t affect you.
A shortage of homes available for sale will continue to squeeze the market. It will cause competition among home buyers. If you are taking out a mortgage, you may end up competing against cash buyers who guarantee a quick closing and waive off contingencies.
Almost one-fourth of the buyers made cash offers last year and their share will continue to increase in 2018, making it difficult for buyers who are financing their home deals to win bidding wars.
Think and act like a real estate investor
Even if you are a regular buyer, you should consider buying a property with minor defects. Move-in ready properties are getting expensive, but you can get a bargain deal if you are willing to get your hands dirty in a renovation project.
Be more focused when it comes to due diligence
The growing popularity of online property listings has made finding a home very easy and convenient, but for this very reason, doing your due diligence has never been so important.
Keep in mind, all that glitters is not gold. An online offer that is too good to be true is definitely a red flag. It can be an attempt to steal your identity or scam you.
Keep yourself informed about the latest trends in real estate in Fargo ND markets. Learn to analyze the data regarding pending home sales, median home price, inventory, increase or decrease in price etc. Also keep a close eye on new legislations or taxes that can affect your target markets in the short as well as long term.