The Most Profitable Real Estate

The Most Profitable Real Estate

by Von Sutten

Every homebuyer can be broken into two categories or a mixture of those two. There are those that are buying a home for the sole purpose of enjoying a place to live and experiencing a little more security, but there are others still that are looking for real estate that they can live in while also making a considerable profit. Buyers who are just looking for a nice place to live are less interested in bargains and "fixers" and for this reason are not really interested in finding the most profitable piece of real estate. However, those slightly more adventurous buyers are willing to compromise certain things to get a great deal and make a big profit, and for these types of buyers there are several ways to find just the right property.

If you are trying to make a profit of more than just the average appreciation value of a home, it is a simple fact that you will need to choose a house that is not quite perfect. However, this does not mean any old piece of junk will do the trick. There are several guidelines to consider.

First, you should be looking for a structurally sound home in a decent location. Complete overhauls and remodels are risky, while small cosmetic projects can easily increase the value of a home. Even a new paint job can increase value. Five times the amount of money you spend on paint will be added to your home's value. Similar cosmetic improvements that will add a great deal of value are new carpets, hardwood floors, landscaping, lighting fixtures, kitchen cabinets, and window coverings. Homes that need more intense structural repairs can become real nightmare and should be very carefully considered.

If at all possible, you should find out how much the seller paid for the home. It might be as simple as asking them, but you might need to check county records. This will give you a good idea about how the values have increased in that particular area, but it will also let you know how flexible on price the seller might be. The longer ago it was purchased, the less the seller probably paid for it, and the more negotiable the price might be.

Looking for these things, the real test comes with negotiating to get a home under market value. Finding a motivated seller and convincing them that their home requires some extra attention will help your case and work as a good foundation for bargaining ability. With a little extra work, you can move into a home that will also end up making you a lot of money. Be ready to buy, but be patient to find the right property. It will definitely pay off.