What To Do Before Scheduling A Walk through
If you’re new to real estate investing or have never purchased a home before, it may surprise you to learn just how much you can find out about any given property— even before setting foot on the premises.
And as an investor, every listing you consider needs to be evaluated through two different lenses: from your point of view as a buyer, and from that of the buyer who’ll be purchasing the home after you’ve finished renovations.
In other words, you’ll need to be able to see the home’s full potential, despite its current condition.
5 Things You Should Research Before You Book A Walk through
1. Local Crime Rate
One of the first things prospective buyers research is a neighborhood’s crime rate. And as you may have guessed, it’s much easier to sell a home in a safe neighborhood than in one riddled with crime.
So, save yourself the aggravation of struggling to unload a property by researching local neighborhoods and their crime rates well before you schedule any walkthroughs.
2. Property Taxes In The Neighborhood
Just like a high crime rate, high property taxes can have a negative effect on buyer demand in a neighborhood. Not to mention, you’ll be responsible for paying those taxes as you renovate the home and wait for it to sell, so the higher the taxes, the greater your expenses, which inevitably cuts into your profits.
If you’ve found a listing you’re interested in, visit the county website or get in touch with the county tax assessor’s office to review public property tax documents and find out roughly what you can expect to pay.
To stay organized, you can even create a simple spreadsheet with key information about each separate property you’ve researched. This is also a great way to store notes about different neighborhoods, so you can quickly and easily compare listings to determine which potential investment property will be the best fit for you.
3. Local Public School Ratings
Researching local schools may sound strange at first. After all, you’ll be flipping the property, rather than living there with your family.
Remember, though, as an investor, you want to put yourself in your buyer’s shoes— and most buyers want to move to an area with top-rated schools. In fact, that’s why you’ll typically notice that neighborhoods with high-performing schools are generally the ones with the highest demand.
Essentially, school ratings have direct impact on property values, so make sure you invest wisely!
4. Asking Prices Of Other Homes For Sale Nearby
Between the house hunting process and renovations, most flips can be completed within 2-3 months.
That said, you’ll want to take note of the average asking price for similar active listings in the neighborhood. Additionally, you can use tools like Zillow Research to find historic property value data for your neighborhood. This allows you to review home prices month-over-month, so you can see how demand and property values shift during different times of the year.
This will help you to determine roughly how much you can expect to sell your investment property for, post-rehab.
5. Average Number Of Days Homes Stay On The Market
Last, but not least, find out how many days a typical listing in your neighborhood remains active. Not only is this information crucial for putting together an accurate timeline, but it will also help you to understand the level of demand for properties in your area.
Remember to consider both current listings and historical monthly data as you’re considering various neighborhoods and listings— and don’t be afraid to ask your Realtor if s/he has any pertinent data to share with you. Real estate agents are among the best resources for your market research, because they’re required to keep up with real estate trends on a daily basis!
Find Your Next Profitable Flip Today, With CastleRock!
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For more information about CastleRock or any of our active listings for sale, please feel free to contact our friendly staff today!