What’s a good from a bad in real estate? If you’re looking to buy a house quickly and hassle-free, we’re here to help!

Investing in real estate in Wilmington and nearby areas can be a great way to earn extra income. Before you buy a house quickly, it’s important to know how to identify good investment properties. You don’t want to end up with a problematic home or costly repairs. Remind yourself: a house is an investment.

So to help you out, here are a few things you should always consider before buying investment property in the Wilmington area.

Assess the Neighborhood’s Quality.

You should know a good deal about a neighborhood before investing in it. But if not, let us give you some pointers to start:

• Is the neighborhood considered up and coming?
• What does the future development of the area look like?
• What is the demographics of the buyers and renters in the area?
• Is there a Starbucks on the corner or a discount store?

Before you put pen on paper, look around at the local businesses. Major retailers invest heavily in studying neighborhoods. Areas with high-end grocery stores and specialty coffee shops usually attract tenants who can reliably pay rent.

Whether you’re buying a house and rent it out afterwards or planning to live in it long-term, a bad neighborhood is rarely worth the trouble.

Compare Property Value in the Neighborhood

You should research what other properties in the neighborhood are selling for and how long they are on the market before selling. This is important if you’ll buy a house in cash.

If the days on market is dwindling over time, it might be a great time to buy and resell for a profit as this shows greater demand in the area. Also look at what properties are renting for as well as vacancy rates.

Are property managers offering specials such as free rent or other incentives? This may mean they are having trouble renting their units out. A good rule of thumb is to always look at properties that have actually sold or recently rented. Listing prices reflect the owner’s expectations, not the property’s true market value.

Analyze Your Financial Risk vs. Reward

Before making your investment, you will want to analyze your financial risk vs. reward.

There are several equations investors take into account when considering a real estate investment. Some of these include the 70% rule which states that you shouldn’t pay more than 70% of the after repair value or ARV of the house.

If you are renting out the property, you can consider the 1% rule which states that you should be able to charge at least 1% of the properties value in rent each month.

While you should always consult with an accountant and other professionals, using these gauges will give you quick insight into the potential value of a property.

Insufficient Photos or Inadequate Advertising

This one is simple.

If you want to buy a house cheap and you saw one, don’t make a deal yet. It’s always a good to check the photos. Listing photos can effectively sell a property. If there are few photos in the listing or advertisement, it likely indicates there isn’t much worth photographing.

Bad photos or a short description are a sign that there aren’t many good things to say about the property.

It has been on the Market for a Long Time

If a house has been for sale or on the market for a long time, there is likely a reason why. 

If other investors have been passing on it, it could be signs of a lemon and you should stay away. Even if its a beautiful house, keep your emotion out of it and really ask yourself why the house hasn’t already sold.

You can research the renovation history of the house and review sales information. Additionally, looking into the title history can reveal if there are any liens on the home. This information is crucial for understanding the property’s condition and potential issues.

Make sure to really assess it first before you buy a house.

Poorly Done Repairs or Additions

We know you want to buy a house quickly. But if the repairs to a house were done poorly, whether by the owner or a bad contractor, you should definitely walk the other way.

What other repairs were done poorly that you can’t see? It is likely that the house wasn’t properly maintained, which can lead to big problems down the road.

An owner who skimps on repair costs isn’t likely to pay the costs of properly maintaining the property. If there have been additions or renovations to the house, make sure all permits were pulled correctly and that there are no code violations before you buy a house.

Understanding Local Market Trends

When investing in Wilmington NC realty, understanding how seasonal fluctuations and economic trends impact property prices can help you make smarter decisions. In most markets, spring and summer are the busiest seasons for real estate, with an influx of buyers looking to buy a house in Wilmington. This increased demand often drives up home prices, making it a great time for sellers to list their properties. Conversely, fall and winter tend to be slower seasons, providing better opportunities for buyers to find deals, negotiate prices, and secure homes in Wilmington NC at a lower cost.

Beyond seasonal changes, economic factors also play a crucial role in the real estate market. Interest rates, job growth, and inflation all affect home values and buyer demand. A booming economy often leads to rising home prices, making it an ideal time to sell. On the other hand, during economic downturns, more sellers may list their homes at competitive prices, creating opportunities for investors looking to buy a house as is for cash or homeowners who need to sell my house fast in Wilmington.

For investors and homeowners alike, staying informed about these trends is key to maximizing returns. If you’re looking to sell my home fast for cash, timing the market can help you get the best deal. Likewise, buyers seeking to buy a house in Wilmington should watch for economic shifts that may lead to better investment prospects. Whether you’re buying, selling, or investing, knowing how market trends affect houses in Wilmington NC can make all the difference in your real estate success.

Do you want to buy a house in Wilmington?

Looking for a good investment property? Want to buy a house? You’ve come to the right place! Contact us today to learn more! (910) 538-7737