How to know if property is a good deal. When it comes to purchasing a home buyers want great deals on their purchases. Two of the biggest factors, according to recent reports, in determining whether or not a home purchase is a good one are condition and location.
However, perhaps the biggest factor in determining whether or not a home is worth the actual investment is a keen eye.
Here are five different ways to help determine if a property is actually a good real estate deal.
Check Liens
Take the time to check for any liens and zoning issues. This is perhaps one of the best ways to determine that a property is a great deal to invest in, as these specific properties are generally too expensive for more retail “DIYs,” yet not enough meat for actual institutions. Generally, liens and zoning issues that have been placed on any and all smaller non-institutional grade properties are considered to be the best to consider investing in.
Beware Tv Show Advice
Another useful tip is to forget all of the HGTV-type hype and consider purchasing what looks like the worst home on the block. From there, you can make renovations to the property at a much slower pace, as well as how your budget allows. While factors like older appliances and formica aren’t necessarily a bad thing, more can also be said in regards to the overall value of location itself as opposed to something that can easily be replaced, such as counter tops.
Check Roofline
Checking out the roofline of a home is another important tip to make note of as well. This is perhaps one of the most useful tricks recommended by many different home inspectors. Doing so is a trick that will let you know not only if the room is original or new, but also if the home is sturdy or not. Not only that, but the roofline of a home can also let you know if it will end up draining properly as well.
Calculate Investment
Another useful tip to take into consideration is to determine if the overall price is less than 100 times the monthly rent. This means that if you are able to purchase an investment property for $900,000, then rent it out for $9,000 per month, then this means that you have found a great deal. Even though this could end up simplifying many factors involving real estate investment, price itself as a factor of 100 times the overall monthly rent is a great baseline in order to obtain an amazing price on an investment itself.
Follow 1% Rule
Following the 1% rule is another great tip to consider making note of as well. The general rule of thumb among many real estate professionals is that many buyers should use this rule, which states that income property should always rent for at least 1% of the total purchase price in order to yield a positive amount of cash flow. As a result, the overall due diligence would analyze the fair market rental rates in the area in which the home is currently selling.
How to know if property is a good deal. At WEICHERT, REALTORS® – Barton Harris & Co., we respect your uniqueness, treat you accordingly, and recognize that you’re more than just a buyer or a seller–we listen to your needs and goals and help you achieve them. When it comes to something as important as the sale or purchase of your next home, put your trust in the hands of WEICHERT, REALTORS® – Barton Harris & Co.
