Being a real estate investor isn’t an easy task. Properties go for ridiculous sums of money every day. A single wrong step can cost you significant losses. This is why it’s important to first do your research. Learn from more experienced investors about how the real estate market works, and what makes it tick. This is key for ending up a successful investor in today’s volatile market. Here are some secrets you should know if you want to improve your investment skills.
1. You must set the stage
It’s a worn-out cliché, but things like making popcorn just to welcome buyers with a pleasant smell actually work. You have to emphasize music and match it with the interior design when getting ready to show off a property. Other than popcorn, try some low-key music that visitors don’t know. This helps in case someone might have bad memories tied to a more popular song. Influencing buyers like this is akin to a good play. You set the stage and present exactly what they want to see and hear.
You also have to take into account who your audience is. If you are selling a five-million-dollar new build, you might opt for different music compared to selling a quaint old Greenwich house. It all depends on location and potential buyer. Nonetheless, popcorn and cookie spray are unparalleled as far as charming scents go.
2. Know that prices aren’t arbitrary
As a real estate agent, you don’t just set the price of an estate willy-nilly. There is a system you can use to best gauge roughly where to set your sights on. You have to first consider comparable properties in the surrounding neighborhood. Similar properties are expected to be similar in price. Another thing to look after is where the market is headed on a grand scale. If it looks like it will gain more value over time, adjust the price accordingly and explain to the buyers why it’s so valuable.
The seasons also affect asking prices. Right after the fourth of July might not be the best time to sell, for example. School starting soon is on people’s minds so moving isn’t. You have to find a sweet spot both in terms of timing and price. Another thing to keep on your mind is that you can’t over-do asking price. Banks will refuse to extend mortgages that deviate too much from appraisals. This will stop your sale in its tracks.
3. Do your research on the properties
Finding the right property to invest in is a lot like trading stocks. You have to know every single detail of how it can end up profitable. The catch is that properties are much more volatile and more difficult to liquidate, and they also cost exponentially more than stocks. The tables are turned when you need to buy a property that you later intend to sell. But as a real estate agent, you already know how it works and how to avoid being deceived.
Properties can vary in quality and doing all that research isn’t too easy. When checking out a potential property for sale you can consult firms in the local area. There is no need for you to do all the dirty work alone. A good catch will just about guarantee a degree of profit. Knowing what to look for is half the battle.
4. Slow and steady wins the race
Just like the story of the tortoise and the hare, the patient and persistent win. While it’s not rare that someone can make quick money from buying and selling a property, it’s certainly not the norm. It can take a while for you to reach your end goal, but the payoff is worth it in the end.
Reaching your goal is one-part luck and one-part strategy. Building a repeatable business model that is also reliable isn’t an overnight task. Making profitable ventures in real estate will require a significant portion of your time and hard work. You want it to support you in the long haul, after all. Commitment is the name of the game. Real estate accrues value over time, making any good step is going to be worth it, eventually.
In conclusion, real estate is a dynamic market that you can’t really get into without giving it your all. You have to understand how people think and keep in mind tons of rules that can make or break your business. Follow some of these tips and you’ll be off to a good start.