Time studying the market is the answer. Bill Green in “Think Like a Tycoon” recommended looking at 100 houses for sale then following up to see what they sold for. That works.
When I was starting out, I’d spend one or one and a half hours after supper reading through the listing in the multiple listing book. Those probably don’t exist anymore. Studying listings at www.realtor.com or on the MLS is a replacement for that action.
Study the sales. Read about the sales prices in the newspaper, if they appear there. Here in No CA the San Fran Chronicle Sunday Real Estate section lists sales prices of houses in many surrounding counties, including where I live, Oakland. I read it regularly.
Also, pull up comps for houses that intrigue you.
After a few months you will know the market values. Then you can start making your offers and buy.
I have posted another topic in regards to my situation and how hard Ive found just being an agent and not aplying my own investor techniques (that I assumed I had learned , but never applyed). Aside from that I would just like to know how people who are agents and investors apply the access to MLS etc. to their investor side. Also, I wonder if this is a technique to use, to try and get a home at a deep discount- purchase the home thru a mtg. person with no money or a low DP. Then list the home on the mls for its full reatil price, the only worries are if someone will buy it, and where I will get money for the DP. As you can see I have become jaded when it comes to creative thinking
When I see something like: “the only worries are if someone will buy it, … .” I know that the person does not yet know their market well enough to be buying. It means that you don’t know what properties will sell. You don’t know for what prices they will sell. In other words, you are not ready to buy a property at all. Once you know your market, you’ll know the answer to your concern. You’ll know what sells, for how much, and how quickly.
Then, and only then, are you ready to start paying money for fast turn-over properties.
Re: Agent/Investor what techniques do you use? - Posted by Jim (NY)
Posted by Jim (NY) on August 13, 2003 at 15:47:13:
Hi Ron,
What is the best way to learn about your particular market? As you’ve probably guessed, I’m a newbie, and I am trying to be cautious in my approach to REI.