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By: Kathleen Coomer
Is your real estate investment strategy flawed? Does it always get you to less profits? If so, this page is for you. You are about to discover powerful investment secrets that will help you turbocharge your profits.
You are going to find this very shocking. Not a lot of people really understand this concept of pricing properties. But it works for me and other successful real estate investors time and time again. It can work for you too. When you are pricing properties, you'll have to look at active listings as well as sold listings. Looking at sold properties alone will not help you sell a lot of property successfully. Add this to your real estate investment strategy and you'll see some powerful changes.
An appraiser will always say that the property value must be based upon solds. That's what appraisal guidelines tell him to do. But you'll always have to look at current properties as well. Why? It's necessary because the active house isn't sold yet. There's no one who has purchased it at it's listed price. So it may never sell at the quoted price.
Every active home will give you an idea behind the price that is competitive enough to sell. This will help you attract more buyers and convert one faster. But the sold properties will also give you the baseline figure that hard money lenders and everyone else are willing to pay for. The sold homes will give you the base value but not the actual value. You need to make sure that your real estate investment strategy involves looking at sold as well as active listings.
Apart from that, the present market conditions will also make drastic changes to the pricing of the property. But here's a tip for you: If the market's appreciating, the sold homes will always give you the real value of the property.
But if the market is depreciating, you'll have to look at both. The sold properties will be more expensive than the active properties. Therefore, people would be paying less for propeties that sold for a higher price last month.
Your property will be overpriced in a depreciating market place if you base it on what sold last month. Therefore, it is essential for you to look at both. The buyer will be looking to pay less for the property. Therefore, you have to modify your pricing accordingly.
Make sure that you look at what's selling in the marketplace. Look at all the properties that might seem to be very similar in features to yours. Look at their pricing. If their pricing is less, drop it accordingly. If it's more, increase your prices and make it even. Keep modifying your real estate investment strategy based on what's selling and what's sold.
Author Resource:->??As a real estate investor, you need to be counter intuitive in your thinking. You have to choose a real estate investment based on the right facts and with the right strategy. If you want a strategy that will work wonders for you, go here - real estate investment strategy
Article From Article2008.com
Source: http://article2008.com/Art/503795/235/Real-Estate-Investing-Tips-Strategies-For-Profits.html
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