Many people are considering investing in Wellington real estate with home prices nationwide on the rise. Perhaps you’re interested in shopping for Wellington Florida houses for sale but you’re still trying to evaluate whether or not it’s the right investment for you. In this article, you’ll discover some key questions to ask, and thoughts to consider that can help you discern if you should buy a home in Wellington. 

What are your goals for investing?

Each person has their own goals for investing in real estate. Some investors will purchase a property with the intention of renting it out to tenants. Others will perform a few upgrades to raise the value of the home before putting it back on the market with hopes of turning a profit. And others are looking for a long term commitment due to family plans or to grow equity. As you think about investing in a home in Wellington, consider what your desired outcome is. This will help you narrow down your options when you begin searching for homes, and it will give you a better idea of what features and amenities are most important to you in your new home. 

What is the market currently like?

Although home prices in Wellington are trending upwards, demand is not always as high as you would expect. Some homes will spend several months on the market before going under contract for an amount that’s at or below the original listing price. Less than 10% of homes sell for a price higher than listing, and it’s uncommon for homes to receive multiple offers. Knowing which homes are priced accurately, and how to interpret a property’s Days On Market or DOM, is why savvy buyers make sure they only work with an experienced Wellington Realtor. Since the housing market often rises and falls because of Florida’s winter season visitors, along with the nationwide economic climate, you’ll need the expertise and guidance of a seasoned real estate agent when buying in Wellington.

Price trends in Wellington

Wellington's real estate market has seen steady appreciation over the past few years. The median home price has increased by approximately 5-7% annually, outpacing many other parts of Florida. Luxury properties in Wellington, particularly those in equestrian communities, have shown even stronger appreciation – even reaching double-digit percentage increases year-over-year.

Seasonal Fluctuations in Wellington

Wellington experiences significant seasonal fluctuations in its real estate market. The types of  buyers vary through the year – the high season coincides with the winter equestrian season (roughly November through April) and sees a surge in demand. During this time of year, both home sales and rental prices in Wellington can increase significantly, especially for properties near the equestrian facilities. The off-season tends to be quieter, with more negotiating room for buyers, but also fewer properties on the market. Demand for homes in Wellington remains strong because of its reputation as an equestrian community and its family-friendly atmosphere.

If you rent your home, will you look for short-term or long-term tenants?

Investors who choose to rent out their home have the option of renting their property on a short-term or a long-term basis. There are advantages and disadvantages to either option. Long-term rentals can be a more secure option, but they don’t provide as high of a potential return. You’ll likely make enough to cover your monthly mortgage payment, but you probably won’t pocket much extra cash. Short-term rentals can have a higher per-night return, but you’ll have to work harder to market your property to tenants on an ongoing basis. Another benefit of a short-term rental is that you maintain the ability to stay in the home when you want.

How will you maintain the property?

Owning a home is a major responsibility, especially for investors who have several properties to manage at one time. Many investors will choose to hire a property manager or a general contractor who can help them with ongoing repairs and upkeep. This is especially helpful if you spend most of your time in a different location. Hiring a property manager in Wellington will ensure that there’s always someone available who can respond to maintenance requests from tenants and who can prepare the home for changing seasons and inclement weather.

Who can help you shop for a home?

With the above information on seasonal demand and home prices, property investment returns that have been trending higher, and long and short term rental considerations, you likely are ready to speak with a Wellington real estate agent. Getting more in-depth market data and a better sense of whether it is a buyer or seller’s market is a crucial first step on the home buying journey. If you’re thinking that Wellington real estate might be the right investment for you, reach out to Darlene Streit, one of the top agents nationwide year after year. Darlene will help you shop for a home with a personalized selection of tours based on your criteria, and will know if any new properties are coming on the market soon that meet your wants and needs. Darlene values integrity, diligence, and hard work in her practice, and that same professionalism extends to her team as well. With over 20 years of industry experience, she prides herself on creative solutions, expert negotiating, and client responsiveness for truly extraordinary client service. Reach out to Darlene today at 561.531.2727 or [email protected] if you have more questions about investing in Wellington real estate or if you’re ready to start shopping for a home. You’ve never experienced such a high level of responsive service than what Darlene delivers – from your first call to a successful closing. Happy home hunting!