You notice how there’s always a special offer advertised for different pieces of Boynton Beach real estate? Anyway, I am not saying they are respectable properties or their ads are a bunch of bologna. However, regardless of what you buy into, there are three key areas that you must avoid with a 10-foot pole when engaging in any South Florida real estate related transaction.
Pitfall Number 1: Don’t Overpay!
The whole point in investing is to find properties that are undervalued. How does one find out what is undervalued versus overvalued? Without getting into technical details, the bottom line is you need experience. Yes, much like shopping for anything else, real estate is essentially one of the highest ticket items in the shopping center of life. It’s advisable to stick with one market, perhaps the one closest to you in proximity as a starting off point. Through your experience and asking the right questions, you will eventually have a feel for the pulse of the South Florida real estate market you are looking after, and identify what is considered a good buy for you, as well as for any or all of your customers.
Pitfall Number 2: Know the Market
Yes, you are actually going to have to do more work. This part is common sense though, but executing it where the beauty and the payoff come in. How do you make money in Palm Beach County real estate? The most basic way is to buy low and sell high. So, from the first step, you have identified general trends in the value of homes, and are pretty good at spotting undervalued homes for sale in Boynton Beach.
Assuming you acquire that home, you may want to profit from it by selling it off to someone else for a higher price. How can you do this? Well, there are many ways. For one, most markets appreciate over time so if you want a longer-term approach that will work. Making upgrades to the property will automatically raise the price of the home as well. Build a second garage or a swimming pool in the backyard. Think in terms of what the market wants, not what you personally want. You aren’t the one buying it. You are trying to sell it to someone else for a higher price than you bought it. So, think with your head and do not let your emotions get the best of you.
Pitfall Number 3: Know Your Budget
It may be a fine philosophy to go through life on a whim, but real estate is serious business, and thus diligent financial planning and budgeting is critical to your success. Don’t worry you don’t need to be a finance geek. However, you need to be disciplined and know your budget from the onset, or you may be finding you are learning that you need to make certain renovations or upgrades and didn’t anticipate it going over to a certain cost. Think ahead as to what is needed before going forth with investing in a gorgeous Boynton Beach luxury home.
About Berkshire Hathaway HomeServices Florida Realty:
Berkshire Hathaway HomeServices Florida Realty serves 19 counties throughout Florida with over 40 locations and approximately 1,800 Sales Professionals. The full-service brokerage company, founded in 1999, is a subsidiary of Lennar Corporation, a Fortune 500 company and is a franchise member of the Berkshire Hathaway HomeServices’ network, one of the few organizations entrusted to use the world-renowned Berkshire Hathaway name. The company offers residential and commercial services as well as seasonal rentals, property management, REO & Foreclosures, corporate relocations, referral services, title, home service plans, and personal concierge services. Berkshire Hathaway HomeServices Florida Realty ranks in the Top 10 in the network among 42,000 Sales Professionals, 1,200 offices throughout 47 states. The company is the overall No. 1 fundraiser for The Sunshine Kids Foundation, having generated more than $3.37 million since 2001. Visit www.BHHSFloridaRealty.com.