Using Real Estate Comps To Win

Using Real Estate Comps To WinMost real estate investors start their careers with a basic knowledge of real estate comps.  Additionally, when they start investing, they start in their local area. The reason behind this is because we feel more comfortable with the areas and know the areas better. It is also easier to get local real estate information that we need. Investing in your local market is also cheaper to start out, there is less travel costs, you can see what you are buying to give you a comfort.

When looking at the market you need to see where other investors are buying their houses. Most of the best deals will be found in low to middle class neighborhoods. Look for safe neighborhoods that might have somewhat older houses and houses that are in reasonable shape for repair. Searching real estate comps will help you find the properties that you will want to invest in.

There are different types of markets to invest in. They are generally appreciating markets, and depreciating markets. Appreciating markets are markets where there are not enough houses or a very high demand for houses which causes the price of houses to go up. Depreciating markets are where there is a lot more houses than people to fill the properties. This causes prices to start going down. In these markets you can pick up several deals, while in appreciating the house prices are going to be much higher and harder to find great deals. The deal will still be out there, you just have to know where to find them.

Learning your market by using real estate comps is key to becoming successful. Every market can vary by neighborhood, so make sure you know your market well. Make your profit when you buy and go make your mark.

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