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Are You Almost Paying Too Much for a Real Estate Investment Property


paperfree Aditi Bansal

Updated on Monday, May 22, 2017

Investment property prices are still rising in most U.S. markets. If you are looking for an investment property, be sure to improvise a strategy that will assist you not to pay too much. Be sure to share any other tips that can help investors avoid paying more on the next property they buy.

tags  #Real estate Investment  #Real Estate markets #

 

The rising prices in most real estate markets in the U.S. is causing most buyers to start paying more for investment properties they want. It’s important to understand each submarket you are considering investing in. When you make a purchase from a market you do not understand, there is a probability that you will pay more for that property. However, when you know every detail concerning your submarket, you will make an informed decision. So, how will you tell if you are being charged more for a real estate investment property? Here are some tips:

Never get emotional

Staying all business when purchasing a real estate helps you not to get attached to the deal emotionally. Create a detailed checklist that contains all the investment properties you have looked at. You will note that some properties miss vital items when you create the list. Analyze everything logically instead of getting emotionally attached. For instance, you will avoid thinking that you have found a killer deal you have to jump into for fear of losing it. Instead, sit calmly and compare it with other similar properties before deciding to buy it.

Do things differently

When searching for a property to purchase, most investors look at two or three properties, make an offer on one property, and then purchase it. Avoid doing this, and instead, follow the 100/10/3/1 rule. In this rule, you look at 100 properties, make offers on ten properties. Of those ten offers, there is a probability that three will be accepted. You can then go ahead and choose one property out of the three and purchase it.

Paying attention to the market days

It’s important to stay informed on the market days, so you can have a look at similar listings in the submarket before the decision to execute a purchase. Look out for your investment comparables. Have the listed comparables been sitting on the market for a long time? At what price did such properties start at and what is their current price? Ensure that the type of property you are making a comparison with is similar to your investment property. Also, get to know how long the properties have sat on the market as well as their price before and now.

Property price history

The price history of the investment property you want to buy is important. Looking at the history may help you to realize that the incredible deal you think you have landed on isn’t so amazing. This way, you will take the necessary steps to ensure that you benefit from the deal.



This page with a focus on Real estate Investment, Real Estate markets was shared by Aditi Bansal.

 
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