Buying in the Right Location
We’ve all heard the expression, location, location, location… This usually refers to the actual site of the property, and varies with the kind of property. A store at a busy intersection is at a more valuable location than one in mid-block on a residential street. However, a condo in mid-block on a residential street is more desirable than one at a noisy intersection. Location also refers to the neighborhood. All the properties in a neighborhood undergoing gentrification are likely to rise in value, regardless of their site or condition. However, the rate of gentrification is rarely something you can depend on. People often own a house for more than a decade, as the neighborhood quite definitely, but only very slowly, improves.
You may feel more confident about investing in one neighborhood and less so in another. Follow your instincts. Such things as whether you intend to live in the property, and if so, whether you have school-age children, will influence your decision. The factors influencing your decision are likely to be special to your own case. It is better for you to review them yourself than to have a real estate agent do it for you. We will look at the importance of location in describing each of the four kinds of properties—first home, trade-up home, vacation home, and rental property—that we are considering as real estate investment opportunities.
Many of us know particular neighborhoods in great detail, but can hardly find our way around an adjoining community. This often has little to do with the length of time we have spent living in the area. The places we know best are where family, friends, and we live, work play. We may not have the time or curiosity to see other places. We may not even be aware of how little we know about where we live. You’ve probably heard people say, “The last time I was out here, it was all scrubland.” Indeed large areas of housing seem to come into existence almost overnight! You may need to expand your horizons by doing some exploration. A real estate agent can be a big help here.
Once agents know their clients’ preferences and what they can afford, they can simplify the search process by ruling out neighborhoods as too upscale or downscale. They know which trendy areas have passed their peak and which are still climbing in popularity. They also know why prices seem inexplicably low in some areas, for reasons such as local pollution, highway planning, gang activity, orpolitical corruption. Your real estate agent can be a unique source of otherwise almost unobtainable knowledge.
You have to let real estate agents know in a very direct way exactly what you want and expect from them. When they see that you have a clear target in mind and are determined to achieve it, they won’t waste your time or theirs trying to dump less desirable properties on you. Remember what I said about other people noticing your character makeup? Agents quickly detect it when you know what you want and intend to get it. Your own attitude has everything to do with how real estate professionals treat you.
