It is extremely important to establish the value of property prior to making any offers. You must know value so you can determine what you should offer. Base your offer on what the house will sell for after necesseray repairs. Remember to learn the areas first, and buy in your farm area or an area you are familiar with. Always take a conservative approach until you gain experience in dealing in a particular market. Start with a few neighborhoods within a subdivision that contains similar houses, for dealing with similar houses makes price comparison easier.
Be wary of poorly designed houses. It is OK to buy a house that needs works, but stay away from complete structural differences. Like do not buy a house that is completely different than the other houses in the area. Since it will surely be harder to sell.
An expensive but accurate way to determine the value of the home is to hire a licensed appraiser. The appraisal will cost around $275 – $450 depending on the size of the property. It may be
So how do you find your own value?
Doing an appraisal yourself is not difficult. You just need to know where to find the data or past sold comparables for a specific area. The good news is that in todays HiTec area, this data is available throughout various channel. Once you are familiar with finding this information, all you have to do is make comparables between the property you want to buy and the ones already sold. This will provide you with a good estimate of what the properties have been selling. Furthermore give you a good understanding of where you should be making your offer. Keep in mind that seasons affect sales prices. Make sure you take this into your figures.
There is no exact formula for a good deal that works everytime, in every neighborhood. It takes experience to recognize the potential in a real estate transaction. But it is not impossible, and with a little homework, you will be right into your new path of real estate investing.