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