Real Estate Investment Tricks and Tips
If you want to become a successful investor in realty in spite of the daunting economy and the disappointing state of the real estate industry, here are several tricks used by the old pros of the game in order to get ahead of the current buying or selling trends instead of just chasing them.
Study Local Pricing: The first thing that you need to study is the list of current price trends in your locality. For instance, a prospective investor should observe if the price of real estate is growing faster in one neighborhood than in others. Afterwards, you should double-check to see if the average home price is more expensive than in other surrounding towns as well. This should give you a good idea of where the largest demand presently resides.
The knowledge you can gain from studying local pricing is particularly useful for clients who want to purchase homes at the lowest yet most value-addled price possible. Real estate professionals and realtors should have a wealth of information regarding this subject, especially when considering their access to the MLS or the Multiple Listing Service. The town hall, the local newspaper, and the Internet should also carry a record of the latest sale prices as well, so be sure to check them out promptly.
Get the Best Brokers: Agents who are able to consistently profit in the realty business despite the economic setbacks and the lethargic market of modern-day real estate are usually the ones who know the industry inside and out. Staying ahead of the real estate investment curve requires agents (or at least agents who are worth their salt) to do their homework, so to speak.
They are aware of what new trends and developments are in store for buyers and sellers across the nation. They educate themselves about the transportation and schools nearest to a given household. They absorb as much information as they can about the area they invest in. They have to literally be know-it-alls in this trade because anything less than that will spell doom for their careers.
Look for a Catalyst: One indication that a place is an up-and-coming hotspot when it comes to real estate leads and investments is the development of new infrastructure. Whenever you spot new schools, buildings, and roads being built on a particular town or subdivision, that's a clear sign that the neighborhood is prepared to have an industrial growth spurt or sorts.
Being able to preemptively invest in a burgeoning community can prove to be very profitable for investors in the long run. Additionally, there certain types of development projects (e.g., shopping centers) that will prove to be supremely appealing to a myriad of homebuyers, with the added bonus of keeping the tax base low to boot.
At any rate, spotting developing areas can be as easy as looking out your car window as you drive by; telltale tip-offs of the beginnings of construction, surveying, and land clearing in and around major highways can serve as pretty big clues too. You should also look for the erection of new traffic lights, the installation of turnaround lanes, and the widening of traffic lanes, because they all indicate an increased amount of traffic flow in that area in the near future.
Beverly Manago is a freelance writer focused on the real estate industry. She is also a consultant for My Single Property Websites, a web 2.0 marketing tool that lets real estate agents create stunning virtual tours and single property sites easily, with a free version available for listing presentations. She also contributes to articles on how to Improve Real Estate Blog there.
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