Real Estate Investing Articles

Since you have explored the property you are interested in, you must know how it compares to the universal neighborhood. All you have to do is put the house in one of three categories - average, above average, or below average.

When appraising a home’s condition, there are a number of things you must consider. Structural condition is the majority important - items such as walls, ceilings, floors, doors and the windows.

Then paint, carpets, and the floor coverings. Pay special notice to bathrooms and bedrooms and whether the plumb and electricity work efficiently. Look at the fixtures, such as light switches, doorknobs, and even drawer handles. The front and back patio must be in sensibly good shape.

The missing ingredient would be information on the state of the homes from your comparable sales list. Provided you chose the right agent to stand for you, they would have in fact visited most of those homes and be clever to provide key insights.

Even when comparing precise model matches within a tract of homes, you must note whether the preceding owners have made any substantial improvements. Cosmetic changes must be largely ignored, but major improvements must be taken into account. Most significant will be room additions, particularly bedrooms and bathrooms. Other items, like luxurious floor tile or even swimming pools should be taken into account, too, but must be discounted as well. A pool that costs $20,000 to fit does not normally add $20,000 in value to the home.

Rely on your agent to give you supervision in this area.

Dan Antony is a dual-licensed real estate agent and appraisal assistant. Founder of a non-profit drug prevention corporation, a real estate consulting group and is the author of "Thrilling Bullets Real Estate." This 300-page power-packed book during early July 2004 comes with a website that further supports its readers.