What about the market?

[Kamira Collier]

I have been reading, watching videos, listen to podcast, and getting advice from people and there it was someone would always say something about the market. For example, you should learn your market or people should know about the market when it comes to investment in real estate. My question is what do people mean when they say learn the market and how should you go about that ?

[Greg Scott]

• If you had 5 minutes to walk through a house would you have a pretty good idea what price it would sell for in 30 days?
• Do you know what streets are mostly owner-occupied vs. renter occupied?
• If you are selling a property, do you know how much granite countertops will increase the sales price?
• If you are renting a property, how much more can you get for black appliances over white?  What about stainless over black?
• How much will it cost to paint and carpet a bedroom in your area?

If you can answer questions like this, then you probably know your market.  If you cannot answer these kinds of questions, you are at a severe disadvantage to other real estate investors and are at risk of making bad decisions (at best) or maybe even getting conned.

There is no real shortcut for this.   Network with people that know the market.  Examine houses that are for sale/rent and see how quickly they go and at what prices.