If you're looking for a great real estate deal, either residential or commercial, there is no better time than now to start shopping. Realtors and sellers are eager to make deals and unload property quickly, which means that you'll get a better value for your dollar. Now is the time to take advantage of the sluggish seller's market and snap up some choice real estate.
Although you'll have plenty of options when selecting a property, there are a few important things you should consider to help you narrow down your decision. Follow these basic tips to ensure that you get the best deal possible.
1. Appreciation
Whether you're planning on a quick turnaround sale or passing down your new home through the generations, you'll want to consider the potential appreciation of the real estate. Restoring and reselling homes is considerably more difficult in the current market, but holding on to a property for ten to twenty years can become a sound investment.
You can gauge future value by choosing a prime location and doing some research into future price trends in the surrounding area. This will help you determine whether it will give you a good return on investment.
2. Property Condition
Many homebuyers prefer move-in ready property. While this is often hassle-free, it doesn't always make the best deal. Real estate that requires some elbow grease can mean greater value and profit in the long-term, if you're prepared to do the work and have some experience.
Houses that require extensive renovations can often be negotiated for much lower prices. In ideal situations, the buyer can then restore the property for less than they saved, which means instant profit and a future higher selling rate.
If you don't have the time, ability, or experience to renovate, it might behoove you to choose real estate that is already in good condition. Even highly skilled home renovators can lose money on projects that require work.
3. Inspection
One of the most important (and too often tragically overlooked) steps in buying real estate is the inspection. Having a thorough inspection can prevent you from making a huge mistake.
If there are problems found, even minor ones, it can give you some leverage for further negotiations, especially if the seller is highly motivated. Always use property inspections to your advantage in getting the best price.
4. Cash Flow
If you're buying a property to rent out to other tenants, you'll have to take into consideration your monthly income compared to your own mortgage. A more expensive property does not necessarily mean greater profit.
You'll have to evaluate the local market and the kind of demand you foresee for the kind of real estate you're offering. You also must take into account maintenance fees and permits if you're buying commercial property.
Great deals aren't found as much as they are created. If you're not a real estate mogul or are making your first home purchase, it's a wise decision to employ the assistance of a realtor. They can help you negotiate and offer expert advice on what to take a second look at and what to avoid.
New Orleans is now a buyer's market and investing in property here is an excellent investment. Before you decide on a New Orleans real estate investment, contact an experienced realtor at http://www.realestatelouisiana.com to help you get the best price for your property.
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