Houses Under Fifty Thousand

Do Real Estate Research By Talking

Your real estate research might start with the U.S. Census information about a town, and include inspections of specific properties, too. There are many ways to research towns and properties, but don't forget one of the easiest and most useful tools: talking. Allow me to explain with a true story.

My wife Ana and I were traveling, and had stopped in Farmington, New Mexico for a few days. We found a house for a winter project. The plan was to fix it up, live in it, and then sell it in the spring for a profit.

Just before we were to make an offer, we took a last walk-through. The owner showed me around, while my wife started to talk to the woman who was renting the house. The tenant told Ana that half of the outlets in the home didn't work, and other useful information.

When I heard this, I went down to the basement for a second look at the wiring. The house not only needed all new wiring, but I found a garden hose attached to a natural gas line. The owner just shrugged and said, "You can just cut that off."

To this day, I have no idea what that was about, but for these and other reasons, we didn't buy the house. We have found that it always helps to talk to everyone when looking at a house or other real estate investment. The neighbors and renters are especially helpful.

Doing Real Estate Research On Towns

Talking to people isn't just useful for information on individual properties. It can also be a great way to research a town. When I once called the Chamber of Commerce of Deming, New Mexico, the chairman casually commented that the city was using up the water faster than the aquifer was being replenished. They also had no back-up plan, which was enough information for us to cross Deming off our list.

Use the phone first, to learn about a town. just find any excuse to call anyone from a real estate agent to a random resident. Ask questions about crime, whether the local government welcomes or chases away new businesses, and what the climate is like. Have houses been sitting for sale for years, or do they go fast? What are some good and bad things about the town?

Before moving to Tucson, part of our real estate research was to call people in potential towns to ask if they owned a snow shovel. If so, we crossed that town off the list. Two towns can both get 45 inches of snow per year, according to the statistics. However, in one it may stay all winter, and in the other it melts before noon. Our snow shovel question told us the truth behind the statistics.

Once in a town, go to a good local bar to do your research. Patrons will tell you which big employers are about to move in or out of the town, how fast homes are selling, whether there are gangs around, and much more. Finally, talking to people is a great way to do real estate research, but verify what you hear. People will sometimes exaggerate.