How to Succeed at Real Estate: Making Serious Money

Installment #10

No matter how flexible the seller is, the property is useless to you if the value of it does not support what you are considering buying. For example, there is no point in paying $200,000 for a house in a neighborhood that has houses that sell in the average price range of $60,000-$70,000. The chances of making money in a deal like that where you are paying that much over the typical market value of a piece is very slim.

A business exists solely for the purpose of making money; without making money and being profitable there is no way that, a business will succeed much beyond the infancy stage. My goal is to help you make the most informed decisions possible so that you start the real estate market a step ahead of others who are having to do their own research instead of reading my guide that has all of these tips and suggestions.

Property has several different ways of determining value, different aspects of the value effect the value differently however. Objective and subjective factors both play into effect in the value of the property. Objective factors include how many bedrooms, how much square footage is livable, how many bays the garage has, how many bathrooms, and other factors.

Objective factors directly influence how much you can get from the property in return for what you put into it. Other than the building specifications, that help effect the value of a house, the condition of the property is in is also quite important. A house in poor condition is not worth nearly as much as a house that has been kept in tiptop shape over the years. Water damage, termites and ancient windows can all add up to big remodeling expenses that must be factored into the price of the property to determine how well the value holds up.

Subjective factors tend to be tied closer to the color of the paint, the style of the house and other highly personal things about the property. Some people may discover they only buy houses in which the driveway is on the left, and they dislike those that have right sided driveways. These are all subjective factors; however, it is not the complete list of subjective factors.