how to evaluate a market?

Jessemac22

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Mar 19, 2019
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#1
Hello all this is my first post..
just wondering how to evaluate a market instead of listening to the "salesman" in a realtor? I have been researching edmonton and been prospecting for a week now. i have no income properties yet and quite frankly worried about paying over market for a single family home. I've been doing spreadsheets on properties to calculate cashflow. the problem is i am not confident enough to make my first purchase can anyone tell me how to properly analyze a property and market so i can ensure myself i am paying the correct amount and judging the monthly rent correctly?
thank you
 

kfort

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Sep 1, 2010
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#2
I sent you a pm Jesse, take care.


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Jessemac22

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#3
hmmm interesting thank you so much for all of that information kfort! so that accounts for rental rates what about market value? every realtor ask like every house is a steal.. obviously i know this is not the case. how can i notice a opportunity to make a sound investment below market value?
 

kfort

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#4
Get clear on current market conditions. 60 days of sold comparables. And get clear on what a comparable is (and isn’t).

As a former teacher I would suggest you keep in mind .... it is not uncommon for those who don’t know what to do with their life but are in university to target an education degree... and for those who drop out to target an agents license.

Not all agents are created equal. Not by a long shot. Find one with a lifetime relationship mentality, not a transactional mentality. I’ll send you some more stuff that may assist.


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ThomasBeyer

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#5
Take your time. The market is soft and will remain soft in Edmonton.

Know what you can afford and where the asset will be.

This means assess cash situation and be pre-qualifies for a mortgage. Did you do that yet ?

Maximum value growth will be within walking distance of new, not yet open LRT stations such as Valleyline to Millwoods or west LRT line to Lewisville Estates.

Write offers at ten or more percent below asking. If you write 20 offers one will say yes. Do not feel you insult sellers. They can counter or don’t respond. Write A LOT of offers.

Research a very VERY small target market, both in terms of house type (say up down houses with a livable basement - aka raised bungalow - with at least 5 BRs, or THs or bungalows) and area ( say within 6 blocks of your favourite not yet open LRT station). With over 10,000 sales/year you can’t specialize in all asset types in all areas. Pick one house type and at most two areas not bigger than 4x6 blocks each.

Related posts here on how to get started http://myreinspace.com/threads/educational-rein-posts-by-thomas-beyer.10663/
 
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ThomasBeyer

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#7

Matt Crowley

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Dec 14, 2013
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#8
Good commentary on market status in Canada: https://researchgateway.cbre.com/Layouts/GKCSearch/DownLoadPublicUrl.ashx

I'm not sure how I fell about a best out of mediocre set of options. If you need to allocate capital today, my personal thought is to short Canada. I don't like what I see out there right now. There are always good investments on a deal-level of course but macro picture is negative.

I personally think Canada is being ruled by some special interest groups right now and our democracy is seriously broken. We are falling badly behind.