Let’s talk about the importance of location.
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Marcia Edwards: We’ve been talking about the optimizing of timing. Let’s talk about some other ways to optimize an opportunity as an investment or a home ownership.
Bob Nelson: Well, look at what you need and when you’re available to make such a move. And when you are, get a game plan and execute.
Marcia Edwards: Now, on the game plan, you’re going to take a template and you’re going to say, “This is what I’m seeking.” You’re going to hold that template up to houses or investment properties, of course, and make sure it meets your needs. Once you know, when you’ve found one that you have confidence has met your needs, you’re going to take it off the market, take a closer look. Make sure you understand what it is you’re purchasing.
Bob Nelson: And that’s particularly important. Again, if you don’t get it off the market to a point where you have the opportunity to buy it, you’re just whistling in the wind.
Marcia Edwards: A big part of this is the location, where this real estate is located is a conversation you want to have early on before you get too attached to the interior. If I bring a first-time buyer into a dilapidated neighborhood and show them a beautiful house in the interior, they may just be blinded and not even care where they’re sitting, and that’s a problem in the investment side of the real estate.
Bob Nelson: Yes, absolutely. The adage, buy the worst property in a well-located neighborhood and the rest of the neighborhood value will pull your property up. You not necessarily have to do anything, just attempt to adjust to the standard of the neighborhood, and you get the benefit of that neighborhood. Do the reverse and you’ll never get there.
Marcia Edwards: And that may not be in regards to condition, that may be size. If it’s a smaller home in a neighborhood of larger homes, it may have a positive influence, also. My biggest fear is not when it’s home ownership, is not that you’re going to not buy the smallest and the most minimum property in the neighborhood, but, in fact, you’re going to overpay for something in the neighborhood. So you really do need to calibrate to what’s surrounding that property, not just directly, but indirectly. What’s surrounding the property? What is the transportation, the infrastructure, for that area as well?
Bob Nelson: Exactly. So if you can establish the concept of balance, adjust accordingly, you will optimize your value opportunity. Now again, if you fall in love with something and you’ve got lots and lots of money, you don’t have to worry about doing anything because you’re probably not going to resell. But when you do, you’re going to get penalized. But, remember, you had too much money to begin with.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30pm on KPNW for the “Real Estate Today” radio show.