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Law 2 of Real Estate: The Barrel Rule

By
Real Estate Agent with Chicagoland2to4Flats.info

We think there are FOUR "Laws" of Real Estate that, if you have been looking for property for any length of time, your own experience probably confirms. This blog post covers Law 2: The Barrel Rule. Other blog posts cover the other three.

2.  The Barrel Rule: Rarely, if ever, does it make sense to scrape the bottom of the barrel in a neighborhood. Most people have a choice in neighborhoods-we always recommend staying away from neighborhoods where all you can do is scrape the bottom of the barrel:

  • The bottom 10% or so of the listings will probably all be bad (very small, a bad property, a bad location, or with some other problem). For instance, if there are 240 2 bdrm/2bath condos on the market today in a given area, the ‘barrel rule' says the bottom 24 were probably all priced the way they were for a reason.
  • If possible, we recommend focusing on neighborhoods where your price and that neighborhood's price better fit...

If you want to see a sheet with all FOUR laws on it, click here:

Laws of Real Estate

And, remember, at http://www.chicagoland2to4flats.info/, you can see all the ways we are prepared to support you in the purchase of your investment property.

James Lyon
Vista Pacific Realty - Sacramento, CA

Nice law Bill, who is the we in we?

Dec 07, 2009 05:31 AM
Douglas Lovitt
Washington Management Company, Inc. - Mill Creek, WA

Bill, that's a good rule of thumb for most buyers - and very sound advice.

Dec 07, 2009 05:42 AM