In recent months, I've met several people wanting to sell property they purchased for investment purposes. If I had met these individuals when they made their purchase, I would have guided them to a better investment. In all cases, these owners bought directly from the developer or a for-sale-by-owner.
In one example, I recently met a gentleman who purchased a lot in a large subdivision directly from the developer. He bought the lot in 2005 when the market was at its peak. There is nothing outstanding about the property in regard to location, view, size, etc. At the present time, there are 95 lots for sale in the subdivision where his lot is located. Since only ten lots sold in this subdivision in the last year, the odds are against his property selling, much less making a profit.
Another investor recently contacted me. This lady lives in California and purchased her lot through an investment seminar held by the developer. She had heard of Branson but had never been here or even to Missouri. She purchased her lot without seeing it and was under the impression the lot was in Branson. It is actually in Forsyth, twelve miles away. The lot is gorgeous, but so are the dozens of other lots just like it that are for sale in the same subdivision. This person was very disappointed when she learned that she had paid more for the lot than what similar properties had sold for in the area at the time.
In my last scenario, I spoke to a couple who purchased a condo last year from a for- sale-by-owner. Due to health reasons, they wished to sell the condo and expected to take a loss. They were definitely surprised when I showed them recent sales. They purchased the condo about $14,000 above market value.
None of these situations are the result of decreasing values or down economic times. All are cases of making poor investment choices.
There are two words to remember in land investments: unique and limited supply. For investment, it crucial to buy something that is not ordinary and has a finite supply. For example a lakefront lot in an area where most of the lots around the lake are already built upon is a good investment. Another scenario would be to buy one of the last available vacant lots in a popular subdivision. An additional suggestion would be to buy raw land on the edge of town where expansion is likely to occur.
Another word of caution, get the advice of a Realtor. Talking to a developer or for-sale-by-owner only will yield a one-sided opinion. A Realtor will have access to a multitude of properties and can produce facts and figures to compare different parcels.
Tammie Turner, Tri-Lakes Realtors Visit My Web Site
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