How to determine the value of a neighborhood?

1 Reply

Hi BiggerPockets community!

My name is Dylan, and I'm a new investor looking to learn more and start investing in real estate.

I was just wondering what strategies you guys use to determine the value of a specific neighborhood so you can then decide what a good price is to buy properties at? 

Is it just some simple automated Zillow number that you use, or do you do more manual and extensive research to draw your own conclusions about what good market prices are? Is there any specific resources or links that help you out that you could send my way?

And advice that you could give will be greatly appreciated.

Thank you!

First, NEVER use Zillow's Zestimate for anything.  It is a generalization of a large area, assuming all the similar properties are the same...and they are not.  Market analysis is one of the most important disciplines you can master.  The key is to learn how to find the micro-markets within the markets.

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