If you want to give yourself a distinctive edge as you operate in your local real estate market, you need to do your research. Follow these tips to make sure you’re researching effectively!
The more that you learn about your local real estate market, the better you can position yourself to invest efficiently and maximize all your opportunities. It is never a simple matter of looking at properties and contacting sellers and buyers. Rather, you need to approach the process prepared with a strategy. Follow these five tips to ensure that you do just that!
1. Look into local pricing trends, histories, and standards. You want to know exactly what everyone is getting for their money in the market. This is information will come in handy for you twice: once when you are determining what you are willing to pay for your investment property and again when you are determining the perfect price point to move your property will making the most profit you can. There will always be a range of prices in any market. It is your responsibility to know where along the range every property that you look at should fall.
2. Remember that it is never too early to get pre-approved for a mortgage. The process for pre-approval is not a complicated one, and you are doing yourself (and anyone you work with) a massive favor by going through these motions. There are major benefits to getting pre-approved, included locked-in interest rates and preferred buyer status. As soon as you have decided to research an area for an investment, talk to a mortgage broker about pre-approval.
3. Figure out what could cause prices to change in the near future. This tip is a little more abstract, so if you can make it work in your favor, you will be well ahead of the curve. If there is a new form of public transportation coming to the area or a new attraction that will draw additional tourists or businesses, that is likely to cause real estate prices to go up. Try to foretell the events that will matter in your local real estate market and just how dramatic their impact will be.
4. Look at the schools. Since this is one of the first things that families look at when they are comparing one area to another, it should be right at the front of your mind as you conduct your own research. How are the schools performing relative to other schools in the state? What options are available?
As you are entering a new real estate market, it is impossible to research excessively. The more you know, the better off you will be in the long run. Become a verifiable expert in your area. Learn the history! Meet the people! All knowledge is power, and in real estate, this truism is that much more relevant.