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    Compare Similar Properties For Investing

    If you are thinking of investing in real estate, don't just go out and buy the first house you see with a For Sale notice in the front yard - even if it seems like a bargain. The price could be way too high! How can you find out if it is indeed the bargain that the realtor assures you it is? Don't just take their word for it. Naturally, the seller is out to make as much from the deal as possible, and the realtor knows that the bigger the selling price, the bigger his cut will be. So what to do?

    Don't just ask the realtor to show you similar houses in the region, though this is a good start. The best thing to do is go to his opposition. There are sure to be more than one realtor in the area, so shop around the find out their prices on similar properties. To make sure the properties really are similar there are a few points you should consider.

    - Number of bedrooms. Generally, the more bedrooms a home has the more expensive it will be, so to compare a two bedroom house with one that has three is not a fair comparison.
    - Ensuites - is there one, two or none? A three-bedroom house with no ensuites may or may not be comparable to a two-bedroom house with one ensuite. There are other factors to consider.
    - General condition. Don't just count the bathrooms; look at the general condition of the house and grounds.
    - Floor space. A bigger house will usually sell for more.
    - Building materials used. Brick and tiles will sell for more than fibro. But you have to match these up with your original to see if the price differs and by how much.

    Another important consideration is the location of the property. If you have similar houses, but one is in what is considered a 'good' area and one is in some run-down suburb or ghetto, they will not be worth the same amount. It is advisable to go for the 'good' area, even if it means you are paying a bit more, because when you are ready to re-sell or even rent, you'll have a better chance of doing so. If, on the other hand, you have found a neglected home in a good area, look into it because it could be the bargain of the century.

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