5 Top Tips Every Real Estate Professional Should Knows
Those who consistently make money in real estate know their market. They know the location and the history. They know what new developments are planned. They know the transportation and the schools. They know everything about the area where they invest. They have to know it all to make the most amount of money.
Being ahead of the competition in real estate investment means doing a lot of homework. If you are new to the business, it can be intimidating, 5 Top Tips Every Real Estate Professional Should Know.
- Study Local Pricing
Study the current price trends in the area. A potential investor should look to see if the price of homes is accelerating faster in one area than in others. Also, check to see if the average home price is more than in other neighboring towns. This will provide an idea of where the biggest demand is.
- Look for a Catalyst
One sign that an area is up-and-coming and that it will be desirable in the future is the development of new infrastructure. When you see new roads and schools being built, it's a sign that the community is set for a growth spurt. Investing in a growing community can be very profitable.
- Explore Low-Tax Alternatives
Towns side by side - one with high property taxes and the other with low property taxes - the one with the lower taxes will usually be more in demand.
- Check School Statistics
Nearly every state ranks its schools by how well students in each district fare on tests in math and English. Real Estate Investors should look for schools that are moving up or are atop the list. These areas are often desirable to families.
- Watch the Outskirts of the Major City or Town
If the properties in a major city or town have become overpriced, the areas on the outer fringes most likely will soon be in demand. Areas in close proximity to major bus and rail transportation are even more desirable.
The Bottom Line
It pays to do your homework and to tap local resources to determine which areas are hot now and, more importantly, which ones will be hot in the future. Much of the information is out there and free for the taking. You just have to be willing to do the leg work.
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