OfflineI am researching a city for potential investment properties (wholesale and buy and sell). I new, so still learning. I am using Zillow, Realtor etc for market information. These websites are showing there are many props for sale in the city and very little recently sold. What does this disparity mean?
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This shows that demand for housing is low in the city you are looking at. This usually means high unemployment and/or no new jobs coming into the area.
Michael
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
It means that the housing market is very slow in that area, or the houses are over priced. That doesn't mean you can't make money. You just have to use the proper numbers and price it right..
You can always sell in any market, if you price it correctly.
I've noticed in my area that many listings are expiring. I believe it is because people know the housing market is improving, so they think they can price it at a higher level than it is really worth.
I never have a problem selling my houses, because I price them slightly below the lowest priced, retail listing in the area (I don't count REO's and short sales, they are priced differently).
Make sure you do your research on the area. There are some very blighted neighborhoods, and cities that may take years to return to a place anyone would want to buy.
Good luck,
Jim
Thank you so much for responding. Do you think a market like this has potential for investing?
Thank you so much for responding. This gives me hope for this area. Do you wholesale or buy and sell? Also, what other sources do you use to research an area and what do you look for?
The Internet has became major lead generation method real estate marketing, eclipsing local newspapers and all other sources as the consumers most preferred method to learn about homes for sale.[7] "An overwhelming majority (87%) of recent home buyers in the US say they used the internet as an information resource during their home-buying process, and nearly one-third say they first learned about their newly purchased home from an online channel, according to a study by the National Association of Realtors (NAR). Majority of real estate companies use popular internet marketing methods like SEO, advertising and social media. Websites like Craigslist (United States), Daft.ie (Republic of Ireland) and Gumtree (UK) became in 21st century main sources for both buyers and sellers. Rapid changes in market environment forced some countries to introduce new laws regulating real property market in the web. Even with introduction of internet, traditional media and methods of generating leads were still an important part of Real Estate trade:
Though the internet was the most popular source, buyers also cited information from real-estate agents (85%), yard signs (62%), open houses (48%) and print or newspaper ads (47%). Fewer buyers relied on home books or magazines, home builders, television, billboards and relocation companies. Consumer Report