5 Rules For Evaluating An Investment Property

Sellers place a lot of trust in estate agents to market their property and if they aren’t pushing it as enthusiastically as possible, buyers aren’t going to be interested. Actively ask for feedback from your estate agent after every viewing and see if there is anything you or they can do to increase the chances of a sale.

So, if your property was bought for £200,000, and you charge £10,000 per year in rent for this, you’d have a rental yield of 5%. A driver is a factor that has a material effect on the activity of another entity. In terms of economics or the stock market, it affects the earnings of a company or even the entire economy as a whole.

Look through other listings from your local area and see what they are selling for. If similar properties to your own are selling for less than you originally advertised, it might be wise to drop your asking price.

After a more detailed expense analysis, you’ll often discover the 70% Rule falls short of the mark. Remember that the less closely the comps mirror the property in question, the less accurate you should consider your ARV estimate. The 70% Rule is useful in house flipping to help you instantly evaluate whether a potential deal is in the right ballpark.

You should always create a CMA to get a sense of the value of a home in advance of a listing appointment. Having a CMA Property investment on hand ensures you’re able to address the homeowner’s questions about market value and demonstrates that you’re always prepared. Then, run an updated CMA after the appointment so you can incorporate what you learn when visiting the neighborhood and touring the property with the homeowner. Kiah is a licensed attorney with experience in real estate development.