How We Decide on What Houses to Buy in Birmingham
Given that we’re a real estate investment company, we had to implement specific processes to decide on what houses to buy in Birmingham and its surrounding areas. Many people ask us what sort of factors we look at to figure out if a property should be added to our inventory or not.
Let’s take a look at the decision process we go through before buying homes.
Where is the Property Located?
You’ve probably heard the phrase “location, location, location” before regarding real estate. It’s actually from real estate tycoon, Lord Harold Samuel referring to the only three things that matter when it comes to property. It turns out – he knew exactly what he was talking about!
There’s a reason why we specialize in buying properties in Birmingham. And it’s because we know the area very well. However, other factors come into play on why it’s a critical part of our decision making when we buy homes. One of those factors is the economic stability of the area. If the property is located in an area going through a recession, then we may need to pass on buying it.
Another factor we look at is in determining if the home is in a good place to attract qualified renters. When we buy a home in a quiet neighborhood, our chances are good with getting it rented quickly. But if the home is near a busy airport or train tracks, we know that this is not something renters will go for, so we may not buy the property.
What is the Market Value of the Home?
Often, the market value of a property will be closely related to where the home is located. However, we also have to look at the entire area to determine the value of the homes we buy. Our extensive experience with appraisals helps us to specialize in buying homes in the Birmingham area. We can inspect homes in person, so there are minimal chances of potential problems or mistakes later in the process.
We also extend our research to similar homes that were bought in the surrounding neighborhood. By comparing similar properties, we can determine the value of the homes we buy. We wouldn’t be experts at this if we also didn’t look at economic stability within the community. The homes we buy in Birmingham already have this stability due to the presence of the University of Alabama at Birmingham and the city’s focus on the finance and construction industries.
What is the Condition of the Home?
Even though we strive to buy homes in as-is condition, we still look at this factor along with the other considerations listed previously. While we want to help as many homeowners as possible to get out of their homes quickly, we also want to make sure that investors receive a great return on their investment.
Some of the questions we ask include: how much work does the home require before it’s rentable? What will the repairs cost? How soon can renters move in so that the investor can start receiving a steady income? It’s essential for us to look at the transaction from the investor’s eyes to see if we should move forward or not.
How We Decide to Buy Homes in Birmingham
Regardless of where or why we buy homes, our goal is to make a smart investment decision to provide investors with a healthy inventory to choose from. We go through an extensive process for every property to decide whether or not the property makes sense for both us and our investor’s portfolio.
If you’d like more information about the decision process we go through when we buy homes in Birmingham, contact a member of our team by filling out the form.