Over the past few decades, I’ve worked with clients from Saint Paul, Minnesota to Sanibel Island, Florida. In that time, I’ve consulted with everyone from property investors with millions on the line, but also first-time homebuyers looking for affordable properties. For me, I’m incredibly passionate about helping everyone attain their goals when it comes to real estate.
And whether you’re just starting out on your road to investing or maybe you’ve decided to purchase your first house, you probably have questions. On that note, I wanted to give you a quick list of factors that apply to just about any property anywhere in the country. This way, no matter what your goals are, you have a good starting place.
Your financial goals
This is the very first factor I start with when it comes to all my clients. Are you buying your first home for a growing family? Or maybe you’re looking to generate extra monthly income from a rental property? The answers to these questions make all the difference for whether a specific property makes sense for your situation.
The property’s potential
The next factor I like to look at is the potential. After all, if you can’t work with the property, it better be 100% perfect before you move onto any other factors to consider. And you might be tempted to think this doesn’t matter as much if this property will be your principal residence, but because your residence represents strategic value for your future wealth, potential is a good aspect to consider too.
Price compared to other, similar properties
Of course, price is a big consideration. For many of my clients, staying within a set budget is often key. By comparing the price to other, similar properties nearby, you can get a sense of whether the home is in trend with the neighborhood or undervalued (or even overvalued).
The condition of the property
Of cause, assessing the condition of the property is crucial. If the roof is falling down and the plumbing isn’t working… well, you have to determine if any issues with the property are worth your time. I advise clients not to disregard these properties out-of-hand, depending on their goals. In many cases, you might be able to find a steal with just a few more minor repairs that are needed.
The necessary upgrades
With that in mind, I also like to look at whatever upgrades might be needed. Once I have an idea of what condition the property is in, I factor in each and every upgrade I might do to that property. This helps me get an idea of how the price compares, how much time I might need to take, and whether the home has unseen value that others are overlooking.
Taxes and insurance
If you’re currently paying a lot in taxes and insurance that might change your situation based on your unique goals. For Southwest Florida properties, these two aspects are typically fairly cost-effective for most people. However, I still like to check on them and keep them in mind whenever I’m assessing properties.
The location of the home
People will tell you that it’s all about location, location, location. And it is! However, remember our other factors? This one needs to be balanced against those, so you can find a home within your budget that also meets your goals. Do you want to be close to the beaches? What about arts and entertainment? Or schools and medical facilities? There’s so much to consider with this one given your unique situation.
The area amenities
For Southwest Florida properties, you have a ton of amenities to enjoy. And I always like to consider the closest ones when assessing a property. Although it’s not the most important factor, it does play a part, especially in today’s market.
But I’d love to hear what’s most important to you when it comes to touring a property. Share your thoughts in the comments!
Terry Records
Broker/Owner
Records Results Real Estate
Residential Sales and Property Management Service