Wednesday, January 09, 2008

Understanding Selling Property

By Ken Morris

Most of us have heard about all of the money and security that can be obtained with getting into the real estate game. It's true that fortunes have been made and lost with this unique version of playing the stock market. There are decided differences between how to operate in stocks and how to turn a profit in real estate. You have to know when buying property is a good idea and when you need to ditch it in a hurry. Of course, there is no such thing as a hurry when you are dealing in homes and properties. Knowing the right time for selling property is essential for your financial security as well. While this can be a lucrative business practice it takes hard work and dedication. Here is a basic overview of how this exciting industry works.

The whole idea behind buying and selling real estate is to sell it for more than you paid. Of course, that is just simple economics. There are all kinds of variables that come into play for accomplishing this goal however. One of the first things you will have to learn is patience. Unlike stock market, real estate deals involve peoples' homes and a quick sale is not often in the cards. New homes have to be found first. Another important step, besides patience, you need is understanding of the housing trends and how to time your moves whether buying or selling a property. You can buy and sell on the stock market in a matter of minutes, real estate can take months. In those few short months a lot can change and you should be prepared.

There aren't very many people who have the money lying around to buy homes at a moment's notice. For this reason many people look and watch for home foreclosures. You can look in your local newspaper for default notices. Many times these properties can be purchased for 25% to 35% less than the normal going rate. Another option for acquiring property cheaply is to watch for homes that need a lot of work. Most of those repairs are going to be cosmetic and the improvements greatly increase the value of the home. Obviously this allows you to make a profit when sell after the work is done. Especially if you can perform the repairs yourself the work will cost far less than the profit gained from the repairs. If you aren't very handy, consider using a person who will work relatively inexpensively or add your handy friend in the deal as a partner.

It cannot be overstated how important it is to watch the market. After a while you will get into the habit of noticing trends and how to predict them, just like you would playing the stock market. Keep your patience and be willing to walk away from deal that isn't going to benefit you in the long run. It doesn't matter if you are about to close and decide to not go through with it. It's your money, protect it.

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