What are some good questions to ask when learning a new real estate market?
I’m planning to move to another state and want to do research on the market there.
Join the local real estate investors club (or clubs) and leech on to them - that is the best way. You can find them on Meetup.com or Google them.
Don’t overlook the online resources available to you. Start with realtor.com and do a search for available property in the zip code you want to research.
Contact a couple of the realtors that have listings. Ask for whatever new resident assistance might be available for someone planning to move to the area. You should get some information that may include the largest employers in the area, the best school district in the area, the median income for the area, the median home price for the area, and some idea of the demographic for the area.
Use this information to narrow your focus to certain neighborhoods or subdivisions that have homes that meet your investment criteria.
One of the best ways I’ve found to learn a market is to go to 100 open houses and talk to the realtors there. You’ll learn what Owner Occupants pay which will be a good guide to learning how much rehabbers are looking to sell their finished products for.
Hi all , I think some compulsory question about to ask :
1.Market value of that property
2.price factor there and negotiation
3.the reason to sell
4.what is offer for them yet
This will be helpful to make the decision
Use the resources online for you to start learning the things you need to know in real estate. And yes do your research for this will provide unique statistics that will equip you to make the best decisions. Join seminars to get the knowledge to further your real estate investing goals.
lauraalamery really has the best suggestion. There is somebody making money in real estate in every market but all techniques don’t work in every market. You need to find someone that is making money there and do what they are doing. For example houses are cheap to buy here I Houston but there is nobody making any money flipping these houses because these houses don’t flip. You can, however, make money renting them out. The rent to purchase price ratio is really good here. In Southern California the price to rent ratio is not so good so you might have to use some other technique. I would find out at the local real estate investor’s club.
Realtors have no idea what is going on with the business of real estate. They are fun to talk to but you can’t take their advice very much.
I agree with Bluemoon06. I just flipped a house in Houston area and it wouldn’t sell, but renting it out has become a nice plan B.
Something I would add is to learn who the buyers are. I have family members that are real estate agents in Virginia and probably 80% of their business is military. Around Houston we are in the oil & gas/energy sector. It’s important to know where the core buyers come from and keep track of changes in those areas that could affect home buying/leasing/etc.
The best thing to do is to run comps. See what things are selling for and how quickly vs. what they are renting for and figure out the ratios.
EThompson has a good point, if you know who the buyers are, you can better target them by choosing the appropriate property that they are looking for (assuming you are going to be renting out your property).
For example, if the area is family dominated, they are more likely to be looking for 3/4 Br houses with a backyard, but if the area has a high student population, you might want to focus on an apartment or shared student accommodation.
Other questions to consider:
- Is the area increasing in population?
- Is there currently an oversupply of available property?
- Is there employment opporunities not too far away?
- Is there accessible public transport close by?
- Is the rental return going to cover all my expenses?
Hope this helps,
Darren.