Tips for Investors
Tip #1: Define Your End Goals
As an investor ready to invest in the real estate market of the San Jose (CA) area, you have 2 investment options: invest to keep or invest to sell at a later stage, depending on market conditions.
Your end goal will determine how much time and money you should spend in your property.
Investing to keep means renting it out or using it for your own needs. In both cases, you should be prepared for potential renovation and additional costs to keep up with the latest housing standards.
If you invest to flip and turn it around as quickly as possible, then you may need to wait for the right market conditions and type of home buyers.
Tip #2: Understand The Market
Above all, take the time to learn about market prices and transactions history with the help of a San Jose Realtor familiar with the area. Leverage local resources as much as possible and spend time in the Bay Area to form your own opinion.
Also, while the location always remains the critical factor, there are other "soft" criteria worth considering such as crime rate, hazards risks such as fire (most common in California) or flooding, number of top rated schools in the area as well as attractiveness of the neighborhood to potential buyers or tenants of the property.
Tip #3: Buy As An Investor
When shopping as an investor, you are faced with 2 choices: look for quality properties or snap homes on the low end of the San Jose market.
Unless you plan to use the house for your own needs, stay away from San Jose homes on the high end of the market.
Try as much as you can to invest in cheap properties. Remember the old maxim: buy low, sell high. Cheap and inhospitable places might turn you off first as a home owner but should inspire you as an investor. Look for "fixer-upper" places, "starter homes" that will require varying levels of restoration and/or renovation.
Tip#4: Make an offer based on market type
In a buyers' market you might consider making an offer below asking price based on comparables in the area. In a sellers’ market you will most likely need to place a to bid over asking price. How much over asking price will depend on the desirability of the property and number of bidders competing for the same.