1 of 2

Write now Article Tools

The grass always seems greener on the other side of the fence, or other side of the nation. But the best real estate values may be in your own neighborhood. Search for that real estate value in an area close to you. If you are buying as an investment, there is no substitute for you, even if you choose to have a management company handle the property, you need to monitor what is happening with the property.

Look for properties that are listed with a Realtor,or FSBO, that have not sold. You will be surprised. Many times there is very little needed to make the property more attractive. In a buyer's market, people are very picky, and will not buy a property with the wrong color of paint, or other minor imperfections. When the property has sat on the market, many times you can make an offer of a much lower price, and it will be accepted.

Another method is to choose an area just outside of a growing area. Don't choose an area with already inflated prices; choose the area North, South, East, or West of that area in the direction of the growth. Just because an area is tripling in price today in a very short time, does not mean it will tomorrow. Those are the areas that fall quickly also. Or the proverbial "bubble burst". Areas that have growth, but less dramatic increase in equity are the true best investments over time.

Here is an example of a good investment. A property that was listed with a realtor had been sitting unsold. It was in a modest neighborhood. The home was ugly inside. The paneling from the 70's had been painted, but with only one coat of paint. The walls were streaked, and it gave the appearance of dirt. The kitchen cabinets had been painted, but were dirty, and some of the doors were falling off. The appliances were not new, but acceptable after cleaning. There was a small leak under the sink, but other than that, the plumbing was good, the roofing was good, and the heating and air was good. Also, it had just been announced there was going to be a new high school built that would be attended by students in the neighborhood. I purchased the home for $74,000. Homes in the neighborhood in good condition were selling in the range of $90,000 to $100,000. To improve the value of the home, I cleaned, repainted with a neutral color, and repaired the kitchen cabinets, painted them, an added detailing with wood trim. One sink was replaced with a pedestal sink in the bathroom, and new faucets, and light switch plates throughout. Also, the leak under the sink was easily fixed. I didn't have the home appraised until a year later, but it appraised for $105,000. I held it as a rental for only two years. After the tenants moved out, I replaced carpeting, and put ceramic tile in the kitchen, and baths, and replaced some lighting fixtures. Then I sold it for $118,000. A gross profit of $44,000 was realized.

There are other ways to purchase property, that work best with properties that a Realtor commission is not owed. These methods are purchasing the property Subject To, or by Agreement For Deed, or by purchasing the property by lease purchase, or a Sandwich Lease. With these methods, you control the property, but do not own. It can be a "win, win" situation for both the investor, and the seller. Look for future articles in the real estate heading of www.Helium.com that explain these methods.

Learn more about this author, Kathleen Couch.
Click here to send this author comments or questions.

Add your voice

Know something about Where to look for the best real estate values?
We want to hear your view. Write now!