|Pensacola Rental Homes|
Don't overlook the basic principles behind real estate.
Often we get too involved with the details of a property, that we forget (or overlook) the basics. There are certain necessities that cannot be overlooked in real estate. A few examples:
· Location, location, location- Better locations demand higher prices.
· Adequate Parking- with 2 spots per unit & space to accommodate occasional guests
· Heating and Air- in Florida this is a necessity
· Washer/ Dryer connections- Who likes (or has time to go to) a Laundromat?
Not having these basic necessities can affect your bottom line drastically, especially when owning rental properties.
Likewise, consider these basic ideas or principles behind valuing real estate that often get overlooked. Every buyer should consider these principles before purchasing real estate.
· Principle of Substitution- This principle states that a buyer is only willing to pay the amount of money they would pay for a similar, equally desirable property. This is why real estate agents and appraisers use comparable home sales to value homes.
· Principle of Conformity-This is important and often overlooked. This principle states that property values are enhanced when homes are in a neighborhood and surrounded by other homes of similar age, size, construction, and style. For example, a new construction home located in an area with mobile homes or multi-family apartments.
· Principle of Supply and Demand- The relationship between the amount of homes available and the demand for homes in that area. This relationship changes and results in either a buyer or seller market. If there a surplus of homes for sale or rent, the prices will decrease if demand is low.
· Principle of Anticipation- Believing that a property can produce income or will build equity and yield a higher price in the future. This is especially true for investment properties. A property’s value today is influenced by its future ability to earn income.
Make sure to consider the basic when looking to purchase your next real estate investment. If you are interested in purchasing a property in the Pensacola, FL area, give us a call.
Until next time,
Pam Keen Brantley- Keller Williams Gulf Coast (850) 232-2200
www.Pensacola-Gulfbreezehomes.com Homes for sale in Pensacola
Nicole St. Aubin- Realty Masters of FL (850) 473-3983