If you really want to make money in real estate flipping hoses or just getting a nice home for your family...you have to buy the property at a reasonable price and keep your repair and remodeling costs as low as possible.
There are real estate properties out there that are dirt-cheap...but, if it's way too cheap for the area or square footage, a warning buzzer should sound off in your head. The fact is, sometimes real cheap is way too expensive in the long run.
Don't get me wrong...occasionally a real bargain does come along...but, if it is under priced, you need to find out why it is priced way below the possible market value. There is always a reason and you need to find what that reason is...maybe the sellers live off somewhere and just want to dump it to get rid of a tax liability or maybe there are bodies buried in the back yard.
More likely, there is something wrong with the house itself and you have to put on your Sherlock detective hat and do a little sleuthing and snooping. Be especially alert when it comes to a "for sale by owner" house as these sellers are usually hiding something they don't want to fix. Though, often these can be the best deals and you can openly negotiate with the owner without going through an agent.
The best tools for the job are your eyes, nose, and occasionally your ears. Over time you will develop your gut too and sometimes, I just get that gut feeling there's something really wrong here...so, I keep looking until I find it.
When I drive up to a prospective property for an in-depth personal inspection, I have already surveyed the neighborhood and eliminated such things as bad location and rotten neighbors. Also, I have decided that the house fits the area and is not overpriced compared to the neighborhood. Don't even try to sell a mansion in a ghetto...you will lose every time.
Speaking of ghettos and unknown areas...It is good to take someone with you if you have the slightest apprehension about security in the area. I often go alone and do have a carry permit. You just never know what you might run into. When I first began inspecting, a big mean dog attacked me... fortunately, I was carrying a short crowbar with me and was able to defend myself. So, be aware of your surroundings and don't get caught in a bad situation without a backup.
Well, I got off track there a little...but it was something that needed to be addressed... so, I did.
In conclusion, for this article anyway...You should develop a suspicious nature when researching and searching for a viable real estate property at a price that could be profitable. Notice I said could be, because you don't really know unless you check it out yourself and If you approach real estate buying armed with the right knowledge it becomes more of a science rather than a hope and a prayerSource :- Ezine Article
1 comments:
This is correct; one has to be really cautious while buying a house. I would not call it suspicion but yeah cautiousness is must. Checking out the neighborhood is a very good idea to have a good judgment on the property.
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