Wednesday, August 4, 2010
5 Step Plan for "Picking the Right Property"
Knowing what type of property and where to invest are key elements to "picking the right property". Price often can be influenced by a neighborhood's market values and comparable listing, pending and sold data.
Here are five quick tips on how to "Pick the Right Property":
#1 - What is the street scene? When you are viewing a property don't just look at the potential investment but look at the street scene. Ask questions like - Does this property compare to other home on the street? It the property similiar in style or is it the neighborhood eye-sore? Is the property worse, the same, or better than those on the street?
#2 - What are the improvement, repair and renovation costs? Based on comparable listings, solds and pending data what is the median price of the street? What will it cost to improve, repair or make the subject property marketable? Does the cost to improve, repair or renovate exceed the median price when you add it to your proposed purchase price?
#3 - What are the neighborhood ammenitites? Is there a park, home owner's assocation and/or library? If the property is part of a HOA what are the community perks - e.g. swimming pool, tennis courts, walking trails etc... Neighborhood features are great value additions to your marketing plan.
#4 - Is the property in a convenient location for you to manage or to acquire the services of a property manager? If you are going to maintaining the property yourself and renting to tenants, how far are you willing to go when you get the midnight repair call? Or, are you better served to use the services of a property management company. Know your tolerance level and keep it in mind.
#5 - Talk to the neighbors! You will be amazed at what you can learn about a property when you make a simple inquiry to the neighbors. Neighbors will give you all kinds of scoop regarding the property history, previous owner and the neighborhood itself.
These 5 keys should help you get going on investing in the "Right Property". If you need help or assistance, please refer to my website or send me an email. I will respond!
Tim Osborn, CEO/Founder
The Property Pros, LLC
Broker - KY/OH/IN
PH: (859) 803 - 5034