| Are you looking for an investment? Do you | | | | decision to purchase should be well |
| need a place to live? Are you trying to | | | | researched and timed to maximize your return |
| reduce your tax bill? Is income producing | | | | on investment. |
| property for you? Is this the right time to | | | | |
| buy? Are property values going up or down or | | | | Real Estate is primarily local in nature. If |
| staying the same? There are lots of | | | | demand is high in Las Vegas and availability |
| questions but where do you get the answers? | | | | is low and prices are rapidly appreciating, |
| Do you talk to a realtor, accountant, lawyer, | | | | does not mean than the same will be true for |
| financial advisor, uncle Bill or Suze Orman? | | | | Boston or Phoenix or even Lake Tahoe. You |
| | | | have to research your target market and get |
| The answers to each question will vary from | | | | some historical prospective on changes in the |
| person to person, depending upon each | | | | market conditions. What is the available |
| individuals current situation. Why are you | | | | inventory level now versus 3 months, 6 |
| considering a property purchase at this time? | | | | months, 1 year or 2 years past. What have |
| Your specific objectives and your situation | | | | prices done during that periord? What were |
| are the primary concern. It is not important | | | | average marketing times for properties sold. |
| why someone else is buying, that's their | | | | Lots and vacant land prices, while related, |
| business, but what will a real estate | | | | do not necessarily equate with completed |
| purchase do for you? When I travel I usually | | | | homes or condos. (There may be an excess of |
| rent a car for a day or week. It doesn't | | | | condos while a shortage of lots or homes.) |
| make much sense to buy a car for a few days | | | | This type of information can usually be |
| or a week, but when home it is much more | | | | obtained from a realtor but be sure that the |
| convenient and cost effective to own my car | | | | data is statistically accurate from MLS |
| and I can accomodate my tastes and prefernces | | | | reports or property tax recordings and not an |
| for continual use. Buying or renting a car | | | | opinion or sales pitch by the agent. |
| are both expenses, but with real estate you | | | | |
| add the dimension of investment and the | | | | In a perfect world you would always buy low |
| possiblility of appreciation. | | | | and sell high. In real estate other |
| | | | conditions are also important. Some buyers |
| Real Estate is a commodity much like any | | | | never plan to sell. Location, convenience or |
| other commodity. Prices generally fluctuate | | | | features may be more important that the |
| up and down based on supply and demand | | | | investment aspects of a purchase. Whatever |
| fundamentals and production costs. Remember | | | | your situation, do your homework, understand |
| that fluctuations in supply and demand | | | | the local market and use that knowledge to |
| precede fluctutations in price. Prices | | | | your benefit. If there is lots of inventory |
| appreciate most rapidly when demand is high | | | | and you are one of very few buyers, be |
| and available supply is less than the demand. | | | | patient and negotiate for the best possible |
| When supply far exceeds demand, then prices | | | | deal. If the inventory is tight and you are |
| will decline. It is important to thoroughly | | | | competing with other buyer's for a property, |
| research the market and exercise due | | | | you may have to pay a premium; just remember |
| diligence before making a purchase decision. | | | | that it may be a while before you can turn |
| You can usually rent a place to live, the | | | | the property. |