How many properties to look at until buying?

[Monopoly]

they don't mean "physically" go and look at every property ... both dolf de roos and rk go further on their audio tapes to explain ...

it can be just a case of seriously glancing at 100 in the paper/internet and doing a quick mental sum, comparisons, rental apprisals from general knowledge of the area/quality (which gives you a good feel for the market) ... perhaps physically looking at 10, and this might just mean a drive-by (to assess location and block size) ... super seriously looking at 2-3 (council phone calls, pacing the property out, talking to your pm) ... and then making an offer on 1-3.

it's not hard to look at 100 properties this way.

Why specifically quote me Lizzie, I am not the only one who has adopted the literal interpretation here, it seems most of the other posters of this thread have done likewise???

No matter. But not having read works by either, any comments I make would be out of ignorance. I have heard others confirm (as cited here by Spiderman) that:

Dolf De Roos is widely quoted for his 'inspect 100, put offers on 10, buy 1' theory.

Regardless, of whether this is true or not, IMO attempting to physcially inspect 100 properties is ardous at best. IF HOWEVER you are including searches through realestate websites, perusing virtual tours, going through the "for sale" sections of papers, browsing in RE shop windows etc, then yes, the inspection of 100 properties is easy, and often (hardly surprising is) surpassed!!!

 

[lizzie]

didn't mean to pick on you monopoly ... ... just yours was the first post to succulently sum up what the others were trying to say in a single scentence.

i think the idea is that you don't look at the 100 properties for the suburb over a single weekend (on the internet etc), but watch the area over time to see what the market in your chosen area is doing. in the areas i've choosen i continually watch what comes up for sale, even if i'm not in the position to buy, so that when i am ready to buy i can spot a good deal from 100 yards and leap in ... took us six months to find out ppor, but we knew what the market was like and spotted this great deal the moment we drove past.

the house is 12 years old (with nothing done on it for 12 years) so needs everything done - but only cosmetically. people in the price bracket we were looking at could't see past the out of fashion paint colour and the need to retile the bathrooms. fortunately for us we can do "everything" for around $50-100k (absolute max) yet put $500k onto the value of the property - purely because of location. only because we had been looking did we realise what a barging the property was.

 

[Monopoly]

didn't mean to pick on you monopoly ... ... just yours was the first post to succulently sum up what the others were trying to say in a single scentence.

i think the idea is that you don't look at the 100 properties for the suburb over a single weekend (on the internet etc), but watch the area over time to see what the market in your chosen area is doing. in the areas i've choosen i continually watch what comes up for sale, even if i'm not in the position to buy, so that when i am ready to buy i can spot a good deal from 100 yards and leap in ... took us six months to find out ppor, but we knew what the market was like and spotted this great deal the moment we drove past.

the house is 12 years old (with nothing done on it for 12 years) so needs everything done - but only cosmetically. people in the price bracket we were looking at could see past the out of fashion paint colour and the need to retile the bathrooms. fortunately for us we can do "everything" for around $50-100k (absolute max) yet put $500k onto the value of the property - purely because of location. only because we had been looking did we realise what a barging the property was.

Yes I know you weren't Lizzie, my question was purely tongue-in-cheek!!

Agree wholeheartedly, never rush into the first property (or two, or ten) you see; when the right one comes along at the price you're willing to negotiate on (not necessarily at the price you want to pay to begin with) you'll know!!

Congratulations on the purchase Lizzie!!! Unlike the others, you managed to see the diamond in the rough, and I'm sure you will make it shine brilliantly again, all the while laughing all the way to the bank!! Onya girlfriend!!!

 

[Peter Parker]

Finding the right property which meets all of your criteria is like trying to land on 23 on the roulette wheel. You may get it the first time or it may take 600 spins. If you keep playing the game eventually you will end up with a pile of properties meeting your criteria and how long it has taken won't really matter.

And the great thing about property is that unlike roulette (where you pay for unsuccessful spins), not buying costs nothing except for some minor travel expenses and time (which can be written off as 'research').

Peter

 

[lowb]

if you look at lots of transaction prices vs asking prices, are they usually far off? guess it means that even for non-property investors, people know how to bargain!

 

[silas]

Hi just reading Dolfs book 52 houses in 52 weeks. My understanding is that the 100 10 1 is a guide not a law. Again what I think that they are saying is that it is a numbers game. I have also just watched the movie the pursuit of happiness where Will Smith plays an uneducated trainee stock broker (based on a true story). I was struck again by the principle of the numbers game. He commented that the more cold calls you did the more you were likely to get an opportunity for a live contact and the more of those the more clients you would gain. He called it a numbers game. I guess that with property it is similar the more properties you chase down in every way internet, agents, cold calling the more likely you are to pick up something exceptional and the more you will know when you have something exceptional. On top of the looking though there is the deveopment of knowledge and skills as well as making the most of your natural giftings etc.

Silas

 

[handyandy]

didn't mean to pick on you monopoly ... ... just yours was the first post to succulently sum up what the others were trying to say in a single scentence.

It was a real juicy quote

 

[Celeste]

Hi all

I do all my research B4 I look, mainly the internet, I check listing prices, have alook at photos, check what others are doing for reno's etc, then get hold of current sales figures and opinions from REA - I have been sticking to areas I know, so the transport, schools, development aspect is already known.

then I wait for a Prop. that fits what I want and go look - if its what I want I put an offer subject to building inspection and depending on the prop other items, if they all add up I have a new prop.

the pair of duplex I just brought, I looked thru the 1st one but the 2nd (with tenant) was so disgusting I just stood at the door - 1st one looked so good, decided to just wait on building inspection and put offers anyway. I had not looked at any in the area, I did not really know the area - did all the research on the internet REA sites, council site, sales figures, REA, and a dozen other sites with info - banks etc. I bet I know more about the area now than a REA that has been there for years - even found out the council plans to rename the suburb the same as the new estate. So far all the feed back I have got tells me I got a good deal - even the building inspector who also does valuation.

So, all I can say is do heaps of research on line and by the phone, have a definite plan on what you are looking for and how you want the numbers to add up and go shopping.

I guess I will see how well I did after the reno's and I sell them.

Celeste

 

[BoatBoy]

people in the price bracket we were looking at could't see past the out of fashion paint colour and the need to retile the bathrooms. fortunately for us we can do "everything" for around $50-100k (absolute max) yet put $500k onto the value of the property - purely because of location. only because we had been looking did we realise what a barging the property was.

Wow, must be one flash tile and paint job, and what a return

Good on ya.

BB

 

[lizzie]

Wow, must be one flash tile and paint job, and what a return

Good on ya.

BB

had nothing done on it for 12 years - and even then the colour scheme was dated. but when you're looking at the 7th figure, people have an expectation of not doing any work ...

p.s. when i get around to taking some photos, i'll post the view - that alone is worth the mil ... next door with a knockdown cottage sold 4 months ago for $950k - so basically we got a 5 bed/3bath/2gge/2 living/pool house for $50k that only needs a serious cosmetic makeover ...

 

[lowb]

The concept of true market value is really a concept that isnt an exact science but... yet its so important...

The funny thing is, even after you buy the property, you don't really know how you have done until
-the bank gives you the valuation or
-you sell the property...

Just another thought: has anyone here done a course on valuations of property? Is it a valuable experience?

 

[silas]

I did years ago as part of a Quantity Surveyor's training. I find that any investment has risk which is minimised by knowledge applied appropriately. I have found that understanding the ways that properties can be valued helpful in both understanding the market value of a property, understanding and discussing valuations (for a changed result etc) as well as understanding likely future value as helpful

Silas

 

[Jacque]

Just wondering if the author was referring to PPOR or I/P's.

Personally, I'd spend a lot more time looking for a PPOR.

Regards
Marty

Yes, Marty, we are generally a lot fussier when it comes to our own home, aren't we?! Price also plays a large factor, as buyers are generally (though I don't like to generalise I am for this example) more picky when they have more money to play with.
Personalities (naturally) also play a part, as you can end up with a procrastinator (and haven't we all met a few of these?!) who has been saying for years that they're gonna do this and they're gonna buy that.....