When it comes to getting a good deal most people only pay attention to the property, how it was offered, and the offering price. Sadly enough most people do not fully understand where value can be added on a property. As a real estate agent and professional it is important to understand value add and how it can take a good investment and make it great. In this blog we discuss three places you can find hidden value for your clients in a piece of real estate.
First would be septic systems that are overbuilt and under utilized. The legal addition of a bedroom is one way to greatly add value to most properties. Help your client learn how to go to the board of health at town hall to look into the septic system and how to obtain permits. This can help them identify properties with septic designs that allow for additions without the added cost of a new system.
Second would be finding a property where the home would not be adversely affected by subdivision. Most of the time people only focus this idea on large tracts of land. As a real estate agent, learn the towns that allow smaller lots to be split in two or more. This is a great way to buy a home and immediately recapture some of the money used to purchase the property by selling a lot of land. The other option is to build a second home and make even more profit.
Third would be finding smaller homes that are centrally located on their lot. Look around the area and see if the area is supporting good value for the large homes. These smaller homes offer your clients a great opportunity to add square footage and create serious equity gains fast. Keep in mind what square footages are most popular for that town and how much per square foot those homes are selling for. Again one important step is to check in with town hall about the viability of your client’s project.
The truth is as a real estate agent you can help your clients build wealth through real estate. Taking this knowledge and sharing it with your clients will give you the opportunity to create long lasting relationships. Anyone who teaches someone to earn money will always have a special place in that person's life. As a great Realtor® you can be a friend and an advisor. Lastly, do not forget about building yourself up as a real estate investor.
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