Five Simple Facts About Real Estate Explained

By
Real Estate Agent

The business of real estate is a cut throat business filled with complicated twists and turns, and veterans of the field will attest to that. For ordinary people like you and me, trying to understand the business is as greek as the salad you had for lunch.  ;)

Simple Fact 1: There are only 2 factors that you need to know if you are considering selling real estate – Price and Exposure

Once you have decided without a shadow of a doubt that you want to sell your house, the first thing that you should do is determine the sell price. And, although you ( and probably most of us) think that our homes are priceless, it is probably a good idea to set it at market level and not at what you think its worth. Make sure also that your property is neat and clean – after all first impressions last.

Simple Fact 2: Development of new infrastructures contribute to the rise of property prices

Gentrification is the rise of property prices and the development of new infrastructures such as shopping malls, coffee shops, roads etc. This is a sign of a property growth spurt and a sign that your property has increased in value.

Simple Fact 3: Location ! Location! Location!

Real estate agents cannot stress this enough. Location is so important that it can make or break your property.  You can buy the right home in the wrong location, and you won’t be able to change it. Trust me, I know. This is something that many people searching for Scottsdale homes for sale are practically religious about. The best locations are those in prime spots such as within top rated school districts, close to outdoor recreation and nature, homes with a view, homes near entertainment and shopping, homes near public transportation, health care, and jobs to name a few.

Simple Fact 4: Real estate is a proven wealth building vehicle

It is a proven fact that investing in real estate rental properties can generate current income and significant tax benefits, as well as build equity from appreciation years after the property has been purchased.

Simple Fact 5:  The value of the property should be based on the projected Net Operating Income (NOI)

The property value should be based on the NOI ( Net Operating Income). NOI is just a fancy term used to mean the income generated from a business (in this case, property rentals) minus the expenses needed to operate it.  It is advisable to project the NOI for a few years. However, this is time consuming and requires a lot of experience, so it is probably a good idea to consult an expert.

Comments (14)

Mike Warren
Real Estate - Colorado Springs, CO

Great post Harry, all the best.

Apr 16, 2015 07:41 PM
Odaly Victorio
Team Victorious at Keller Williams Realty - Jupiter, FL
Marketing Expert

While you can't help your location, hiring the right Realtor will ensure your home is priced competively and well-marketing.  

Welcome to the Rain!

Apr 16, 2015 08:38 PM
Rose Mary Justice
Synergy Realty Pros - Dandridge, TN
Synergy Realty Pros

Welcome and a good post indeed.  Pricing the home Right is key to selling. and yes it is a competitive business.  Good luck to you always.

Apr 16, 2015 10:45 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Welcome to ActiveRain blogging Harry. This post hits on very important topics. I like your analogy about the Greek salad. 

Apr 17, 2015 12:24 AM
Marla Yost
Marla Yost Team- Keller Williams Realty - Arlington, TX
The Marla Yost Team

Welcome to Activerain Pricing is the key to selling. Price accordingly.

 

Apr 17, 2015 05:45 AM
Captain Wayne - Rowlett Real Estate School
Rowlett Real Estate School - Panama City, FL
Rowlett Real Estate School / Owner and Instructor

HI Harry Ikanson, welcome to the Rain train! I'm glad you made the brave first steps into the blogging world with us! It's a great place to be and I hope to see many more posts from you in the future!

Apr 17, 2015 06:41 AM
Dan Dee McGinnis The Pumpkin Man
HomeSmart - Phoenix, AZ
The Pumpkin Man

Welcome Harry to Active Rain........know who to hang around and who to not hang around is one of the keys to success in real estate, just like staying away from the television and the news, if something bad happens you will find out soon enough someone else will tell you.

the most exciting business there is

Apr 17, 2015 03:39 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Harry - Location, location, location are the basic tenets of real estate. It's hard to disagree.

Apr 17, 2015 04:43 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Harry - Welcome to the Rain.  Congratulations on completing your first post.

Apr 17, 2015 04:43 PM
Harry Ikanson
Scottsdale, AZ

Thanks so much for all the awesome comments, everyone! What a welcoming community. :)

Apr 17, 2015 05:26 PM
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

Great advice.  There is also something to be said for financing terms.  Sometimes you simply cannot get a property moved unless the seller is willing to hold some paper. 

Apr 18, 2015 02:43 AM
Frank Harper
Idaho Family Real Estate - Boise, ID
Broker/Owner, Realtor, GRI, SFR.

Welcome to ActiveRain! Good job on your first blog in the Rain! Keep up the good work!

Apr 18, 2015 05:44 AM
Mike Cooper, Broker VA,WV, MD
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Harry, welcome to Active Rain. There is a wealth of information here, and the people are awesome. 

Apr 20, 2015 07:59 AM
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Harry

Your post is informative  . . . . and I enjoyed reading it.

Good luck and success.

Lou Ludwig

Apr 20, 2015 12:52 PM