Purchasing residential real estate, that will not only be great to live in, but will also appreciate significantly in value, is the goal of most home buyers. While a bit of luck is involved when it comes to how cities and areas change, or when homes go up on the market, there are also things that savvy real estate investors learn to look for when buying a property, so they can narrow the odds of the home being a great investment.
Below are 5 important rules that should be followed when buying a property so your future real estate investment will not only be a great place to live but will increase in value during the time you live in it.
Location, Location, Location
These are the three most important aspects of buying a property, many real estate agents and investment pros will tell you. Where is the home located in relation to the rest of the area? Is it near the ocean or a great shopping street? Or is it very isolated, difficult to access, or located in a part of town that has a significant amount of crime or noise?
If the latter is the type of place you don’t mind living, that’s fine–it just means your property won’t be going up much in value anytime soon. In fact, it could actually go down. So really consider how the location of the home will play into the quality of life for those living in the home itself, as well as the future resale value.
Don’t Get Emotional
It costs a lot of time and money to find and buy a home. Because of this, a lot of emotions are often involved and it can lead to buyers pulling out of sales or making bad or rushed purchases, due to the feeling they have to buy something all of a sudden.
It’s very difficult for most people to do, but try to take emotion out of these major purchasing decisions. Investments shouldn’t be made based on emotion, they should be made based on what makes sense in regards to location, quality of life, and what you can afford on a monthly and annual basis.
Trust the Market and the Numbers
With very few exceptions, the real estate market is a very steady thing, no matter where you live. While some markets are certainly more volatile than others, each market out there will have some telling evidence in the numbers, specifically what houses are selling for or what is currently happening with market trends.
When purchasing any type of real estate, but especially residential real estate, it’s important to learn how to read and understand these market trends and trust them. Sellers, real estate agents, and individuals may tell you something different but the numbers almost never lie–and are much more reliable than individuals who may have the wrong information or their own agendas. By using the numbers as your guide, you will be much more informed on what to look for as a buyer as well as what areas to target and which ones to avoid.
Prepare for the Unexpected
Nothing is smooth about the search for a good piece of real estate or the purchase of a good piece of real estate. Great pieces of real estate may occasionally fall into your lap and be an investment that changes your financial future.
Other pieces of property may seem like a slam dunk but will present unforeseen challenges. While there is a lot of money to be made in the real estate market or an idea you have in your mind for a dream home on a specific property, none of it comes easily, unfortunately.
Have Good Real Estate Agents
Make sure you trust your real estate agents and know that they can help you not only find properties that are good investments in great locations, but can also knowledgeably bid the price down and close a deal that is best for you.
These are people who are helping you make financial decisions that may effect the rest of your life, so they need to be people who are knowledgeable and people you can trust. Make sure they have a good amount of experience and a track record of helping other customers make great real estate investments.
We buy houses in Buffalo, and we sell houses in Buffalo. If you’re looking to invest in real estate, contact the experts at Arcane Properties to see what we have to offer