Recognize the Best Deals in Cheap Homes for Sale
Foreclosures and distressed real estate offer the lowest priced real estate around. But cheap homes may not equal great values in all cases. Home values can be influenced by a large variety of different and competing factors, including location, home configuration, population trends, local economic factors, and more.
To improve buyer confidence, RealtyStore provides tools to help our users evaluate the investment quality of a particular home, relative to other properties. The primary tool is an investment rating score assigned to the listing.
What is the investment score?
- An unbiased rating of the attractiveness of an investment in a specific piece of residential real estate
- A powerful reference point that helps home buyers make an informed purchase decision
- Adjusts for risk factors relative to other properties
- Evaluates dozens of home and geographic elements that can influence home prices
- Can be useful for both homeowner residents or homebuying investors
The investment rating score ranges from a low of 1 to a high of 100. The higher the score, the greater the calculated potential for an investment return. Returns are calculated in two ways. One calculation considers factors influencing the home's potential appreciation. This is useful for buyers interested in purchasing a home to use as their primary residence. The other calculation evaluates the potential cash flow performance if the home is purchased by an investor who plans to lease the home.
How does this benefit home buyers?
- Helps them improve confidence in their realty purchase decisions
- Gives a critical look at various factors driving home price behavior
- Allows for fast and simple comparison of available properties
A list of critical investment indicators are presented to support the rating score. These indicators show an evaluation of below average, average or above average ratings for:
- Appreciation - Increased market value of a home over time
- Affordability - How much do you get for your money
- Cash flow - Ability to generate a liquid return through rents paid
- Safety - Relative influence of local crime factors
- Schools - Performance and proximity of local education outlets
- Lifestyle - How well the local environment supports a desired quality of life
Financial calculators are also included to illustrate monthly cash flow and projected return on investment.
Each buyer's situation is unique, so certain factors could outweigh others depending on individual preferences. The investment scores should not be relied on solely to make a purchase decision, but can act as a helpful tool when evaluating investment options. Check the listings of your choice to see how their investment scores stack up against other properties in the area.
RealtyStore empowers homebuyers and investors with the information and knowledge needed to win in today's complex real estate market. Our Smart Deals listings are an important part of the value that RealtyStore's users enjoy every day.
To ensure our users can evaluate the broadest variety of affordable housing available in our database, we provide insight on the value of certain listings that pass our rigorous requirements test for Smart Deals. This test includes an analysis of a hundreds of neighborhood and property factors which can influence home prices. The result is a rating score which illustrates the relative value offered for potential investment appreciation (for a homeowner) and cash flow (for home investors).
Smart Deals help our users see and evaluate all possible options for finding and profiting from buying bargain homes and below-market real estate values. These Deals help you see beyond price alone in evaluating a home's potential long-term underlying value. Cheap homes for sale may or may not provide the best deal. But, Smart Deals will help illustrate the truly cheap houses available on the market today. Search the RealtyStore Smart Deals available now in your area.