Bigger Pockets: The 11 Lasting Truths of Real Estate

Usually, the largest asset for most Americans is their home. That’s because a property is bought and held for many years while a mortgage is paid down and prices appreciate. However, by understanding just a few principles, those returns can substantially improve.

Real estate markets continue to the rapid changes over the past few years. Covid initially led to a short drop in real estate activity before it was turbo-charged by historically low mortgage rates.

That initial burst has slowed down. And mortgage rates more than doubled over 2022. While still historically on the low end, they’re near their highest level in 15 years. But potential sellers, having refinanced, are largely sitting tight.

So looking at deals today will require a bit more strategy than in past years.

That’s why one of the key essentials to succeeding in real estate investing is to perform proper due diligence on every deal.

Understanding a market’s current prices and price trends is essential for buying or selling at an optimal price. And, it’s also useful for understanding rents given the big shift in prices there.

It’s also important to remember that prices tend to revert to the mean. That means that some markets will be hot for a while, and then cool down while other markets catch up. Investors should avoid paying top dollar in hot markets, and may instead want to wait for the market to cool.

To read the full list of 11 real estate truths, click here.