A pro in any field is one who is ahead of the pack in the race for excellence. A pro knows his industry in and out and is well equipped to use every situation to his advantage. A pro understands the changing dynamics and works on future strategies while everyone else is still trying to catch up with today. So what does it mean to be a pro in the real estate business? What is the strategy adopted by the Pros to rake in the money? Here are five things, which every real estate pro knows and uses.
1. Study Local Pricing:
Real estate is one business where you have to have your ears to the ground. If you are looking to invest in real estate, the first thing you must do is study the current prices in the area. Also, look at the past trends- are the prices going up or down? At what rate is the acceleration taking place? Now check out the prices in the surrounding towns. A comparison of the prices and brief analysis can help you identify the location with the most demand for real estate. As you keep studying the trends and prices, you will naturally develop the ability to judge the fair price for any property. As time goes on you will also be able to predict in which direction the market is heading. The knowledge of local prices is particularly useful to those who are looking to buy property at the lowest possible price. How do you go about collecting information about local prices? Realtors and real estate agents are the best source of information about property prices. You can also study the local newspapers, and browse the internet for latest prices. The town hall often has records of recent property sales, which can point you in the right direction.
2. Get Pre-approved for a Mortgage:
If you are pre-approved for a mortgage life becomes much easier when investing in real-estate. A pre-approved mortgage means you are creditworthy and lenders will be willing to lend at a lower rate of interest. With financial backing, you also become a preferred buyer from the seller’s perspective who are looking for quick settlements.
3. Look for a Catalyst & Explore Low-Tax Alternatives:
When considering prospective investments look for an area that is likely to grow in the future. Development of infrastructure in an area is an indication of a spurt in growth. It is easy to identify new developments. Just a drive around the town can reveal signs of developments like a land clearing, widening roads, and new traffic lights. A visit to the local administration can help you find out about any new projects that are coming up in the area. If you develop a knack for identifying growth zones you can make big profits over time.
When two neighboring towns charge different rates of property taxes, the one with the lower property taxes will attract more people for obvious reasons. Real Estate agents are well aware of areas with the best and worst tax structures. Tax assessor can help you in knowing the tax rates and if the rates are set to be revised shortly. Towns that are getting overcrowded will most likely hike taxes in future.
4. Check the School Rankings:
Almost all states rank their schools, and this rating gives you a fair idea of the areas that are in demand. A quality school is always in demand and proximity to the school will be a factor influencing homebuyers.
5. Watch the Outskirts:
The outskirts of towns in which the properties are overpriced will most likely see a spurt in demand shortly. Areas close to bus and rail transportation facilities are the most likely to attract more buyers.