Property Crossroads - Real Estate Info

Real Estate Tip No.1 : Familiarize Yourself with the Market

by Maricel Ferrer-Custodio on April 21st, 2007

Any real estate, whether you intend to make a profit out if it (investment) or provide a house for your family (security) should be carefully evaluated before buying.  You need to familiarize yourself with the market. 

Real estate books, articles and seminars are there to guide you.  However, you need to actually get out there and have a feel of the market before embarking on a real estate deal.  Go to open houses, attend auctions and read the latest real estate news and developments in the area where you intend to buy.  Monitor the selling price and the actual sold price of properties in the area. Soon you will realize that as you get more acquainted with the market, the more confident you are in choosing the most suitable property for your needs. 

In one of my articles "One story, Two women…Real Estate Success!", two women achieved their real estate success by being quick to close a deal once they spot a good property.  However, that is just part of their story.  Prior to making any quick offers, they both spent time familiarizing themselves with the market.  Thus, when a bargain property comes along they are confident in their decision to buy the property.  They both knew they were getting a good deal because they are familiar with the market price and actual sold price of similar properties in the area.

On the other hand, Casey Serin is an example of a property buyer who got himself in trouble because he grew his real estate portfolio too quickly.  What I mean with "too quickly" is not because he bought eight properties in eight months, but because he bought too many too soon without getting himself familiarized with the market and with real estate investing per se.  He got himself into a real estate buying frenzy, relying only on the knowledge he acquired from a real estate seminar.  Now, almost all of his properties were foreclosed, he is in deep debt and could barely make ends meet.  Casey Serin’s case is a learning curve and reality check for other property investors.  Through his blog "Iamfacingforeclosure.com",  he was able to impart to a lot of people the pitfalls and real life story of an amateur property investor who wanted to get rich quick.

People may have different goals in buying a property, however having a decent profit or making yourself more resilient to  foreclosure will surely make one’s time and effort in familiarizing themselves in the market worthwhile.

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POSTED IN: Buying a Property, Real Life Stories, Road to Profits