1. The FIRST law in real estate: Big and cheap NEVER equals wonderful.
Many people, when they first start picking property to see, focus on properties that are big and cheap… They are hoping, of course, for big, cheap AND wonderful, but that is like winning the lottery—and never applies to properties that have been on the market for any length of time.
· BIG, wonderful, and very expensive can be found anywhere.
· SMALL, cheap and wonderful is another option to consider…
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).
· If possible, we recommend focusing on neighborhoods where your price and that neighborhood’s price better fit…
3. The Rule Of 2 Goods And A Great: Property, price, and location—
TWO of the three must be good and ONE must be great for a property to be a winner.
· Don't ever buy if one of the factors is bad or all are just okay.
· On the other hand, you can't expect ALL to be great…
4. The Law of the Good, The Bad, And The Ugly:
Expect 20% of the listings to be good, 60% bad or okay, and 20% outright ugly. With those proportions in mind, 50 becomes a magic number: If 50 possible listings fit your criteria, you should expect to find ten good properties worth seeing, probably two of which are great and worthy of a bid.
5. The Law of the Bell-Shaped Curve.
When we set you up with listings, we will show you how to interpret them and encourage you to drive by them to pre-select the right ones to go visit. Picture that your job is to narrow 50 possible places to visit down to the 10-12 best. Our job then is to go see them together. This can go quickly! If we see 4 properties per trip, we can cover 12 properties in 3 trips.
In fact, it happens often that we find the right property in the first batch seen. Other times, we find it in the second or third trip.
As a rule, once we’ve seen the best 10-12 of the current listings, you now have to wait for new listings as they come out. You should expect 1 in 5 to be a so great a value in terms of price it’s likely to disappear from the market almost as fast as it came on. In other words, to ‘play’ the new listing game, you must be prepared to move unbelievably quickly. Agility and quick decisions are the critical elements to success here.
And this is just the start of what you’ll find at www.Chicagoland2to4Flats.info!!!
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