First Rule In Real Estate? Location, Location, Location


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When considering real estate location always sells.  However, neighborhoods cycle in and out of popularity.  The length of a cycle might be years, but, things do cycle back around.  Buyers want the newest for their money, thus, new neighborhoods are nearly 100% owner occupied.  As the neighborhood ages, homes are turned into rentals and pride of ownership begins to slip.  If the neighborhood slips to nearly 80% or more tenant occupied properties will appear tired and neglected.  Prices will slip downward making them more affordable.  Young families and first time homeowners will begin to increase interest the neighborhood and revitalization begins as evidenced by increasing home prices.  As rental units decrease in number and neighborhood renewal begins the market will shift from a buyer’s market to a seller’s market.  In some instances this shift may occur within weeks.

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~ by Lynn Brock on November 8, 2010.

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