Real estate is a growth industry. Many trainers explain the value of investing in rental properties that are profitable. They explain the usefulness of positive cash flow to make a good living. But very few people tell you about the technique of buying and selling real estate, which can make you a lot of money. In the last few years, a lot of possibilities have been created in real estate to make it easier to buy and sell real estate. There is a phenomenal amount of practical solutions, but you have to know them in order not to make a mistake. For this, we will see some points not to neglect in our guide to buying resale real estate, but do not be afraid. Others have been there before you, and now they are safe, their business is in place.
Table of Contents
- Step#1: Target a place to invest :
- Step#2: Research the property :
- Step #3: Study the property before buying :
- Step#4 : Think about the optimization of the property :
- Step#5 : The bank financing of the property :
- Step#6: Buy the property :
- Step #7: Renovate your property :
- Step #8: Enhance your property to increase its price :
- Step #9: Selling your property :
- Step #10: Calculate and pay taxes :
Step#1: Target a place to invest :
First of all, there is a point that everyone thinks, and which is necessary in order to feel comfortable with his future property, is to target the perfect area. Indeed, it is necessary to find a place where people want to buy to live. Also, study the average purchase price in that area. If you see a property with a price that is significantly lower than the market price, you may be able to profit from it.
Our living area
To do this, several methods can be tried. First, you may already have a location in mind, which will make things much easier. For this, there is nothing like looking at the real estate around your home. Indeed, the place where a person already lives can be a nest of good deals. But to be sure that it is a good deal, you will have to do a little investigating.
The neighborhood is a good clue
Once you’ve targeted an area, perhaps asking the neighborhood for information will help you make a choice about the property in question. But also to see in what immediate environment it is located.
It may be in a working-class area, or it may be in a suburb, or it may be in a subdivision of newer homes… the key is not to go too fast because the solution you think is best may turn out to be the most dangerous, due to a high crime rate neighborhood or a bad neighborhood.
Many people want big profits and they forget the first step of buying and selling real estate which is to target the perfect area to invest and find future buyers… The key is to find the first property, and once you have defined what is for you a good investment, you can start from your idea and find others. This is the first step to build your business.
Step#2: Research the property :
To do this kind of research, it is good to take a few moments and see exactly what interests us. Moreover, this differs from person to person. Having a well-established idea, and a plan of action meticulously programmed in your mind is a real asset that will allow you to choose what you need and will facilitate your success in the purchase resale real estate. However, opportunities are rare in this type of market.
Buy resale real estate : Word of mouth :
Moving on to the next step, however, requires a lot of effort. It is about looking for a property that will allow you to have profits quickly. For this, several solutions are possible. Word of mouth works a lot in this field. Indeed, the longer you have the arm, the better it will be.
From thread to needle, you will know which property is for sale, or for rent, if it is a good deal, in which place the property is located if the place is more popular, or in the countryside, … The interest of this method is that it is economical. Indeed, you will not have many expenses concerning all the real estate agencies, … in addition to all that, you will have the opportunity to go directly through the owner, which is a considerable advantage, in this field of real estate investment.
Real estate agencies :
It is still possible to ask real estate agents for help. If you don’t have any idea which places are the safest to invest in, they will be able to give you their advice and look at their sales and interesting areas to buy and sell real estate. Indeed, they will play a great role in helping you find the right property for you. They will know above all how to guide you to show you in which places you will be able to make an important profit.
Step #3: Study the property before buying :
You can always ask real estate agents for help. If you have no idea where the safest places to invest are, they will be able to give you their advice and look at their sales and interesting areas to buy and sell real estate. Indeed, they will play a great role in helping you find the right property for you. Above all, they will be able to guide you to show you where you can make a significant profit.
Buy resale real estate : Study the works and the renovation :
One of the things to look at first of all is if the property is listed, for example, if it is heritage,… which will influence the resale a lot if there is one. Or, if the property in question is almost new, it will require little or no renovations and work, which is a big advantage if you want to resell it without spending a lot of money. But if your property is old, even very old. In order to make it habitable and decent, you will have to carry out renovation work, but also maintenance work. In particular, all the electrical systems, including the heating, will have to be updated in order to comply with the new standards of the last few years.
Before buying, you must therefore study the work carefully. Do not hesitate to come and visit the property with trusted craftsmen who will be able to tell you if the property will need a lot of work or not.
A point not to be neglected for buildings …
A small note for the buildings. That’s why you have to be very careful, because buying and selling real estate also involves buildings. If you want to invest in buildings, it is necessary to see all the defects that will make you expenses that you perhaps did not foresee. And this unfortunately will penalize you if you want to resell the property
Beware of small apartments :
This also applies to small apartments. In recent decades, many people have invested in apartments in the attic of buildings. Indeed, these small apartments allow a low cost of renovation and are easy to create and allow to have a quick profit, which we will see later. However, they are often poorly arranged and not saleable for people who want to buy to live in
Step#4 : Think about the optimization of the property :
Once you have found your property, there is one thing to keep in mind. Anticipating what you can do with your profits is important. Why? The more profit you can make with your property, the easier it will be to pay back the loan you will have taken out with your bank. Here are some explanations. The objective in buying and selling real estate is to be able to make a quick profit, thanks to a quality real estate, as well as an environment that would suit a future potential client, and to be able to continue with a real estate business.
Step#5 : The bank financing of the property :
The key is to know where to turn to finance your real estate resale purchase. It is a question of being able to find the bank that will help you finance your project, by granting you the loan, with a low interest rate, which is very interesting. For this step, there are many solutions and you will have to convince the bank to trust you. To do this, make up a bank file. In recent years, with the progress of digital technology, have emerged online banks that also have interesting interest rates. Moreover, the real estate purchase and resale loan allows you to have a loan that will not bother you, because even if you buy and resell directly this loan will not require you to make large monthly payments.
Step#6: Buy the property :
The purchase of the property is a key moment of the real estate resale purchase. When you come to see your banker, you must prepare yourself well in advance. This is why a solid file will be very useful. The purchase of the property is a key moment of the purchase resale real estate. When you come to see your banker, you must prepare yourself well in advance. That’s why a solid file will be very useful.
Step #7: Renovate your property :
Now that you’ve managed to buy your gem, you need to take care of the renovations to your property. Depending on the purchase you made, the work will not be the same.
Depending on the purchase you made, you may have to do some renovations. This is the case, for example, if you buy a building and wish to buy and resell the property. For this type of purchase, it is necessary to make renovations especially in the electrical system. The installations are sometimes old or completely non-existent. Also, think about the facade and the roof.
But don’t be afraid, in this kind of situation, you have to call on small local craftsmen, who will restore your system to new, and especially to the standards. As the norms in the field of electricity change enormously these last years, it will be perhaps even necessary to make without delay all these small works, before thinking of reselling your real estate, in this case your building.
Step #8: Enhance your property to increase its price :
The ultimate real estate resale technique is to increase the value of your property in order to resell it at a higher price, thus earning more profit at resale. Discover our secrets to increase the price. There are simple ways to do this. Let’s take the case of a house. To attract future buyers, it may be necessary to have some greenery around it, and a corner where children can come and play under the watchful eye of their parent. It is also nice to have a place to park your car, especially if the property is located in a big city and there are few places to park. Why not invest in a garage? In many places, installing a garage is a luxury item. That’s why having a garage is already a bonus for the value of your property. Buying and selling real estate is not something to be taken lightly. That’s why you need to look for a property that offers elements that are sought after by potential future buyers.
Step #9: Selling your property :
Once you have taken all the steps to acquire your property, to have renovated it if necessary, it is now time to resell it. But is it that obvious? The goal, when a person makes a purchase resale real estate, is to be able to settle quickly the file concerning your real estate, but also to be able to refund your loan purchase resale real estate. For this there are still several methods to achieve your goals. Let me explain.
The real estate agency :
For example, you want to resell your house. You have renovated it, and you want to resell it as soon as possible. Don’t be too quick, so that you don’t resell your property at a low cost. Afterwards, you will have to pay back your loan. It is necessary at least that it brings you a profit. For that, you can call upon a real estate agent, who will help you in all the steps. But in return, you will have commissions, which are not negligible.
The off-market network :
On the other hand, you still have the possibility to put your property on the off-market. This option is really attractive, because it will allow you to put your property at a price that you have set. Afterwards, all that remains is to hear from a potential buyer. Moreover, the off-market is the best solution because you do not entrust this file to any intermediary.
Internet and local ads :
But that’s not all. Because when you want to sell your house, you will have the opportunity to publish an ad in a local newspaper, or directly on a website (Leboncoin and the Facebook Marketplace), which will not take any commission of course. These solutions of course have a disadvantage, it is that the future buyer of your property will be able if he wants, to lower the price. This does not happen with a real estate agency.
Step #10: Calculate and pay taxes :
When you want to resell your property, it is indeed a question of taxes. But what kind of taxes? Indeed, the current owner of the house will have to pay several taxes, hence the interest for him to resell his real estate quickly. It is more particularly about the housing tax as well as the property tax.
For example, tax habitation is a tax that everyone pays these days. It is due once a year, depending on where you live. It is collected directly by the commune where you have your property. For this tax, the owner has to be careful, because he has to declare for all his houses. This means that he will also pay for the property he is selling. Thus, the tax is to be accounted for in your strategy of buying and selling real estate. On the other hand, the property tax is calculated differently. Indeed, it is calculated all the time according to the place where you will have your real estate. The value of your property will depend on the surface area of the property that you own and want to sell, its location, its condition, especially if you have renovated it recently, if the property is located in a neighborhood that is developing, new equipment or comfort elements such as gyms, bars, restaurants,…