I ran across this article and it caught my eye. As someone who owns a brokerage, always learning what gives my realtors an edge is key. But in this case, the information also applies to smart, successful real estate investors. The focus is on the five things every good real estate agent should know. I’m modifying it to “Five Things Every Real Estate Pro and Investor Knows.” The list contains common sense things, but they are definitely worth repeating and examining, so we don’t get complacent and forget what makes us successful in the first place. These are all things I emphasize when you’re defining your investing sweet spot. Bottom line: Do your homework to boost your business.
- Local pricing – What are the pricing trends in the area? Determine where demand is the highest. If you have access to the MLS, study houses in the area. If you don’t have access, pair with a realtor who does. Don’t forget about using the Internet, city hall and local papers for research.
- A catalyst – Identify any signs that a certain area is becoming “hot” or desirable. This can be new roads or schools being built, new shopping areas or office buildings. Added traffic signals or lanes can also signal growth. Develop a relationship with local building departments to stay on top of new projects.
- Low-tax alternatives – Learn the tax breakdown of houses in different parts of town. Chances are, there will be a difference. Lower tax areas will be more in demand.
- School rankings – Successful schools will mean higher demand by parents, which will mean more demand for housing. Simple equation.
- The outskirts – If one part of town is becoming overcrowded, the outskirts will be next in terms of demand. If an area is close to public transportation, even better.