Home Buying in Saint Paul>Question Details

Michael, Home Buyer in Saint Paul, MN

when buying a house in an OK area i.e. decent amount of crime. is it to sell the house 5years later. is there a precentage you can expect to lose?

Asked by Michael, Saint Paul, MN Wed Sep 26, 2012

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Carolyn Jass’ answer
Dear Michael,

There are no formulas. You will get for the house what someone feels it is worth today.

Sign up with a Realtor and have them do a CMA (Comparative Market Analysis- it compares the value of your home to others in the neighborhood that have recently sold). This price can vary a lot with the number of foreclosed homes, new improvements to the neighborhood, and so on. I have one seller, who is in a similar situation to your, but the light rail is coming through pretty close to his house and that might help. Contact the city and see if any improvements are coming your way.

Feel free to contact me and I will try to make this a painless as possible.

God bless you.

Carolyn Jass, Realtor
Twin Cities Real Estate, Equal Housing Opportunity
651-344-6226
carolynjass@live.com
0 votes Thank Flag Link Mon Jul 22, 2013
Although I agree with Cameron; I would say that the biggest mistake I see in "retail investors" is not even knowing what the current market conditions are (AKA how to analyze a property to know if it is good or not). I would also say that although I have no crystal ball I can certainly formulate some strong opinions about an investment property for the future. What should be plainly obvious is that I am not a stock broker and no one can "guarantee" anything.

Never buy in a war zone period Michael. I have a friend that did that and he is regretting it seriously. You can always find cheap houses out there, but that does not make them a good investment. You want to buy in desirable neighborhoods with good school districts if possible. It won't matter if it is a rental or just an eventual flip this is best practice in my opinion. Rule #1 location will always be KING.

If you are looking at an investment opportunity in the SFR world a safe bet would be to have dual exit strategies of selling or renting. The rental market right now is hot. I would shoot for a Cap rate of 10-13%.

I am guessing this question is in relation to the other one you asked that I answered. Hope it helps and good luck to you.

~Chris
0 votes Thank Flag Link Thu Sep 27, 2012
Michael,

As the classic investment disclaimer goes: "past performance is not an indication of future returns." In the end nobody really knows what a house with be worth next month, let alone five years from now. My advice to people who are only going to inhabit a property for five years is to live in the house and love it first, and worry about the resale value later. Not that it shouldn't be a consideration, but in the end nobody really knows what the future holds for any sort of investment and real estate is no exception these days. Good luck with your purchase.

Cameron Piper
Coldwell Banker Burnet
licensed MN Real Estate Broker
Web Reference: http://www.CamPiper.com
0 votes Thank Flag Link Wed Sep 26, 2012
Why would you expect to lose? Michael, do you have real estate agent? You need one...if you have one, discuss this with your agent. If you don't have one, get one. An agent represents you - acts in your behalf and best interests. An agent knows areas, knows what makes a house and an area a good combination and helps you use real estate - personal residence or investment - to build your net worth and establish and improve your personal assets. Think about it. An agent costs you nothing, saves you time, money, anguish. Use this great resource. If you are unsure about how to find an agent, write or call me. Liz 612-986-4105
0 votes Thank Flag Link Wed Sep 26, 2012
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