You are interested in buying an income producing property. You hear about a building for sale with a good financial yield. Checking on it you find that it’s a fine property-modern in good condition, and fully occupied. You visit the place and verify everything you’ve been told. What now? If the price seems right you might want to have the necessary papers drawn up and start negotiations. Wait! Here’s where research comes in!
You should do some home work and find out about such things as price history, prices of similar buildings, and whether the location is in a growing or deteriorating area. Above all more than one source of data should be consulted Statistics from local, county, state, and federal offices can provide much key information. The important point is that you don’t go solely on the basis of what you’ve been TOLD about the property. Check the facts. Your Realtor can be of great service in this area. He or she should have the expertise and knowledge to gather all the details necessary to make a second decision to help you determine and realize a return on your investment.