I had a client ask for my help in finding a house that had a lot of potential to go up in value.
It was her first house and she knew it wasn’t her forever home. Her primary objective was to buy a house that had most potential to go up in value, so she could use that equity in a few years to buy her dream home.
I combined four of my favorite investment techniques to find her a house that had already increased in value by 12% on the day she closed on it.
Who doesn’t love instant equity !
This was in a period when the median price increase in Charleston County was 1.9%, so I beat the market by 10%.
Here Are The Four Investment Strategies That I Used
1. Use My Industry Contacts
I identified the area that had the most growth potential, but I didn't love any of the houses currently listed. Each one was either overpriced or had something that I thought would hold back its value.
This is where the value of having a large network of contacts in the industry comes in.
I did know the agents who do a lot of work in the area, so by old fashioned calling around, I was to find out about a new development that hadn't broken ground yet.
Now, some builders don’t want to sell at this stage, buyers get too fussy and want to change things.
This developer had already turned down offers from other agents, but I already had a relationship with his team so they knew it would be a smooth deal.
It pays to have a good reputation in the industry.
2. Buy new construction
I love, love, love new construction, as you’re probably aware if you’ve read any of my previous articles.
There are some many reasons to buy new construction that I’ve already written about it.
https://www.empirecharleston.com/…/why-you-should-buy-a-new…
3. Buy the first house in a new development
This is probably the strategy that I have used the most of over the years and it’s never let me down.
Builders are eager to get momentum for a new development, so they always sell the first house at a really good price. Then they raise the price with each sale, they do the marketing and price increases for you !
It’s a bit of a risk, because nothing has been built yet, you don’t know exactly how it will turn out, but if your agent knows their stuff (cough, cough), they’ll be familiar with their work and reputation, which minimizes the risk.
4. Buy in a 'caterpillar' area
The development was next to a trailer park, which would put most people off, but I know the owner of the trailer park is actively trying to sell it, so it won't be a trailer park for long.
Knowledge is power.
Read more about caterpillars in my blog post
https://www.empirecharleston.com/blog/buy-the-caterpillar
Even better news, it's close to this area that the Post & Courier wrote about today, so you know it's going to continue to go up in value
https://www.postandcourier.com/…/article_f07387a4-c82f-11e9…
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Result from following these four techniques ?
On the day my client closed last month, the house had already increased in value by 12% more than she paid for it.
This was in a period when the median price increase in Charleston County was 1.9%, so I beat the market by 10%.
It pays to have an investor as your real estate agent !
This is especially important in today’s market where prices are leveling out.
Read more about my journey : https://www.empirecharleston.com/darragh