Why are some people consistently making money in real estate? Because they are doing their homework. They know the schools in the area. They know the means of transportation, the commercial centers and the people. They know everything about the area where they are investing. So if you want to get ahead of the competition in real estate investment, you have to know it all.
What Real Estate Agents Must Know
- You must study the local pricing in your niche. You must know how fast the price of homes in increasing compared to other areas or how much is the average price of a home in other neighboring areas. You can tell where the biggest demand is. If you know these trends, you will develop a sense of fair prices for each particular kind of property and which are overpriced. This is a very invaluable knowledge that you can provide your prospective clients.
- Be on the lookout for a catalyst – Development of new infrastructure is a sign that the area is progressing and there is a good future for investment. New roads and schools being built is a sign that the community is growing. When you invest in a growing community, you are sure that it will become profitable. When you see these signs, it is time to look at properties and the possibility of investing on real estate.
- Study the property taxes in adjoining towns. If one town has lower taxes, the properties in that town will be more in demand. You can ask other real estate agents to help you determine which of these areas have the best and worst tax structures. Or you can visit the assessor’s office to find out the most recent evaluation of the area. You must avoid towns and communities that are overcrowded. This will include popular schools areas and busy roadways.
- Study the school rankings – Sharp-eyed real estate agents look for schools that are moving up the rankings. The areas around these schools are where parents look for housing for their students. A big selling point to new home buyers are those near schools that are ranked high.
- Properties in the outskirts of a city or a town have lower prices and is more in demand. Areas near bus or train stations will go up in value.
Doing your homework and legwork will help you succeed as a real estate agent.