How to Succeed in a Down Real Estate Market

A slow real estate market is the perfect time for some investments and I'm not talking fixer-uppers either. This is one good example of what you can look for to "buy low and sell high."

Instructions

Difficulty: Easy

1. Become an expert in the area in which you live. Visit every new and established subdivision and development in your area. Go through as many display and spec houses as possible. Take notes on what looks good and what doesn't.
2. Find the best development that is very near completion. Look especially for those with less than ten building lots left - the fewer the better. Ask the builder where his next project is going to be and if and when he will begin building in the new development.
3. Take note of how many houses are for sale and have sold recently in the subdivision. Find out what the price range of the recent sales have been by contacting a local Realtor. Compare the current prices of houses listed.

Tips & Warnings

• If the houses in a particular subdivision are not selling very well now, this can be a prime time to make an offer on one of the remaining lots to build a future spec house.
• Make sure there are no stipulations about when you have to build.
• Make sure you can use any builder you want.
• Take your time and do a lot of research before you buy.
• Don't get anxious.
• Don't invest money you don't have.
• Finance as little as possible in the initial property purchase.
• Don't plan to build a new home in a subdivision that is too old - you need to stay as close to the price range and style of homes already established.