*This is an article posted on the Real Estate Investment Course Lover’s Official Blog.
Hello!
I’m Momokan, a budding real estate investor
who owns 3 properties and is a first-term student of Lover’s.
Do you all know “how real estate prices are determined?” or “the reason why you shouldn’t take what real estate agents say at face value.”?
If you didn’t know, please don’t buy a property yet! (lol)
Aika Kamino, the organizer of the Real Estate Investment Course Lover’s, says,
when you go to a real estate agent after taking the Lover’s course, you can see through lies and such quite easily, and they might even say, ‘Huh? What is this person talking about?’ in a condescending way, so there are cases (sometimes) where the real estate agent actually gets flustered.
she says.
First, please watch this video♡ (It’s incredibly educational, so everyone interested in real estate investment should watch it!)👇
How are real estate prices determined?
As shown in the video, how real estate prices are determined differs depending on whether it is used or new.
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Used… Since the owner decides the selling price, there is no so-called fixed price. Especially for condominiums where there are no other units currently for sale, the price set by the first owner to list it often becomes a benchmark.
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New… Since conditions like the view change depending on the floor and direction, the developer determines the price based on those factors.
Since used properties don’t have a fixed price, they are sometimes listed cheaper than the market price due to the owner’s personal circumstances, such as wanting to sell quickly.
If you can notice these price distortions, it is possible to purchase a property cheaper than the market rate. (However, these properties are a battleground!)
On the other hand, for new properties, the developer calculates the price meticulously.
Therefore, Aika-chan says in the video, ‘For those who are afraid of large fluctuations or buying at a high price, aiming for new construction might be more stable‘ (*).
*This does not mean that new construction is always cheap, but that large price fluctuations due to the seller’s personal circumstances, as seen with used properties, are less likely to occur.
The reason why you shouldn’t take what real estate agents say at face value
Some people might think, ‘Since real estate agents are real estate professionals, they must give good investment advice!’
But in reality, real estate agents are not necessarily professionals in real estate ‘investment’.
For example, a real estate agent specializing in sales brokerage has the primary business of completing transactions smoothly, and their revenue comes from brokerage fees at the time of closing.
In other words, they are not in a position to judge for us whether a property is a profitable investment.
Therefore, just because they are a real estate agent does not mean they necessarily have extensive knowledge from an investment perspective.
If a real estate agent recommends a property to you saying, ‘It will help you in your old age’ or ‘It will save you on taxes,’ that is why you should not take it at face value.
If you are going to invest in real estate, it is important to sharpen your investor perspective so that you can make your own final investment decisions, so you don’t accidentally get stuck with an unprofitable property.
Real estate agents are knowledgeable about local information and transaction circumstances, and they are reliable partners for moving forward with sales, so let’s maintain a good relationship with them!
For example, I ask real estate agents questions like, ‘What kind of people live in this area?’ or ‘Are there any other stations popular with families?’ to help with my market research.
Once you acquire a discerning eye, you will get a ‘spark’ when you find a good property
I learned discerning skills from an investor’s perspective from Aika-chan and 🐻-chan at Lover’s, and I actually purchased three properties.
As Aika-chan also says in the video, once you acquire a discerning eye, you won’t be able to sit still when you find a property that makes you think, ‘This is it!’
I want to go see it right now!
I want to check the property with my own eyes!
I have to act before someone else buys it!
You get that feeling, and you can’t help but make an inquiry.
By the way, the ‘student who found a good property in the middle of the night, presented it to her husband, and went to see it first thing in the morning’ who appears in the video is me (lol).
As you gradually get the hang of it and learn how to discern properties, you will find searching for properties to be incredibly fun! ^^
In the video, there are also
✅ Why you shouldn’t sign a master lease agreement
✅ Is there a catch to the high-yield properties listed online?
✅ Real estate for tax savings is a waste of your loan capacity
Aika-chan explains these and other real estate investment knowledge that beginners should know in an easy-to-understand way.
If you haven’t watched the video yet, please be sure to check it out until the end! ♡
If you want to know more about Aika Kamino or Lover’s, please take a look at this article👇
▶What is the Real Estate Investment Course Lover’s?
