Real Estate Success and Failure: Skill – The Third Leg

In order to consistently succeed (which actually means succeeding most of the time), a certain amount of skill in select disciplines is essential. Developing these skills will take time, but the education you gather will be priceless. The following represent skills we have found to be very helpful.

• Negotiation – the ability to come to a mutually agreeable proposal with a seller that leads to the favorable acquisition of a high potential property
• Technical Awareness – At least some measure of the following
  • Local codes, both common and unique
  • Trade processes and timing within projects (e.g.; Which is first, paint or foundation repair?)
  • Correct analysis of opportunities – being realistic, even pessimistic in the beginning of a deal regarding cost and potential value on sale
  • Others that may be unique to your market area
• Market Style Awareness: Some like very traditional, some will accept very modern, etc.
• Translation of local feature preferences into house design criteria
  • Are Dining rooms common
  • 2, 3 or 4 bedrooms most desirable
  • Garage or not
  • Etc.
• Neighborhood requirements and impacts to design and profitability
  • Local covenants
  • HOA stipulations
  • Others

The only way I know to gain sufficient levels of skill in these areas is through direct experience. There are too many possible scenarios to fit in even an encyclopedic text book on the subject. This is not terribly motivating, unless you are in the business for the long haul. Each market is similar to others and also unique in its own way. Learn yours and become a student of it and the markets that immediately surround it. The time spent developing these skills will provide you with ever increasing levels of financial rewards.