If you have been involved in real estate for any length of time, you’ve heard it said that the three most important things when it comes to real estate are “location, location, location.”I’ve heard nationally-recognized experts say that over and over on national media.I must politely but emphatically disagree.I believe the three most important things when it comes to real estate are "location, timing, and circ*mstances," and here’s why.
Just yesterday I drove past a location that I have been driving past for 40 years.Yes, 40 years.That location has not moved one wit on any GPS or map.Now, all these years later, massive construction is taking place in that spot.Why is this of interest?Because just a couple years ago, I was part of a group of investors who held an option for a year to buy that property.I was searching for a developer to bring in to put a truck stop there.Well, I was about two years too soon, because that is what is going in there now.Regrettably, my business colleagues and I do not have any piece of that action.
What changed?Timing and circ*mstances changed.For 40 years, it was vacant, overgrown, unfarmed farmland sitting at a freeway interchange in northeast Ohio.The location never changed, but the timing and circ*mstances changed significantly.One of the changed circ*mstances is that the other truck stop at that location is doing exceedingly above what was projected.They often have a line of cars and trucks waiting to get into it.Because of where it is geographically located, it is the first place for drivers to get gas that is more affordable after having driven at least 100 or more miles coming from Buffalo, New York and heading toward Cleveland, Ohio.
While location is a key factor, it took timing and circ*mstances (i.e. a growing, booming economy and the need for more services for people traveling on the interstate) to make it feasible to develop the property.That property had been for sale for at least 10 years before the team in which I was involved got an option to buy it.
Here’s another example.As a young child growing up in Colorado, there was a mega mall called Cinderella City that was a destination everyone looked forward to visiting.In the 40+ years since leaving Colorado, I’ve learned that Cinderella City became a struggling, declining mall that was eventually bulldozed to make way for low-income housing at that site.Once again, the location did not change, but timing and circ*mstances did.
What makes circ*mstances so important is that it includes demographics and economics.There is no better place than Florida to demonstrate how timing and circ*mstances can change the value of a location.
When you are looking at investing in real estate, think long-term as to what you project the future timing and circ*mstances to be regarding that property.
FAQs
To achieve those goals, the three most important words in real estate are not Location, Location, Location, but Price, Condition, Availability. Let's look at the first word – Price.
What are the three most important factors in real estate investments? ›
Home prices and home sales (overall and in your desired market) New construction. Property inventory. Mortgage rates.
What are the 3 characteristics of real estate? ›
Understanding Real Estate
The physical characteristics of land include its immobility, indestructibility, and uniqueness, where each parcel of land differs geographically. Real estate encompasses the land, plus any permanent man-made additions, such as houses and other buildings.
What is the most important part of real estate? ›
First, let's look at why that particular cliche—that the three most important factors when buying property are location, location, and location—became so popular. Most people decide to buy a property based on how much they like the house or apartment, but you are also buying a plot of land when you buy a property.
What are the three most important aspects of a house? ›
While personal preferences and priorities may vary, three key elements consistently stand out as the most crucial when purchasing a home: location, budget, and property condition. These factors influence your immediate living situation and impact your overall satisfaction and investment value.
What are the three aspects of service in real estate? ›
To put together this article, I've reached out to dozens of real estate agents and asked about their best-kept secrets in customer service. Generally, all recommendations can be cut into three main points: availability, responsibility, and knowledge.
What are the 3 A's of investing? ›
Amount: Aim to save at least 15% of pre-tax income each year toward retirement. Account: Take advantage of 401(k)s, 403(b)s, HSAs, and IRAs for tax-deferred or tax-free growth potential. Asset mix: Investors with a longer investment horizon should have a significant, broadly diversified exposure to stocks.
What are the 3 keys to investing? ›
3 keys: The foundations of investing
- Create a tailored investment plan.
- Invest at the right level of risk.
- Manage your plan.
Three Pillars of Real Estate Investment: Income, Appreciation, and Tax Advantages.
What are the 4 P's of real estate? ›
If you've been working as a professional marketer anytime in the last 60 years, you are likely familiar with the four Ps of real estate marketing: product, price, place and promotion. The four Ps are often referred to as the “marketing mix” and encompass a range of factors that are considered when marketing a product.
Key Takeaways
Real estate has seven specific characteristics related to its economic impact or physical nature. They are scarcity, improvements, location, investment permanence, uniqueness, immobility, and Indestructibility. A real estate property can be classified into residential, commercial, industrial, or land.
What are the three most important things about real estate? ›
To achieve those goals, the three most important words in real estate are not Location, Location, Location, but Price, Condition, Availability.
What is the biggest problem in real estate? ›
Introduction
- Problem #1: Not having enough listings. ...
- Problem #2: High lead cost compared to conversion ratio. ...
- Problem #3: Lack of an established sales process. ...
- Problem #4: Uncertainty in the sales process. ...
- Problem #5: Underutilizing referrals. ...
- Problem #6: Competition from online estate agents. ...
- Problem #7: Managing paperwork.
Having a great website can help to make you stand out, but successful real estate agents also harness the power of social media. Facebook Ads and Facebook Live are great ways to promote active listings and respond to inquiries. Instagram is the perfect platform to showcase gorgeous photos of your properties.
What is the #1 feature to consider when buying a home? ›
#1: Price. The first and most obvious consideration when buying a home is the price.
What is the best aspect for a property? ›
For the aspect to add value to a property, the garden and living areas ideally need to face north or north-east. What this northerly aspect gives is sunlight in the garden in winter and maximum natural light into the home (dependent on windows being in the right position).
What are the three main parts of a house? ›
Today we'll start with the structural components: Foundation, Framing, and Roof.
- Foundation. Most houses are held up by cinder blocks under the exterior, perimeter wall of the house. ...
- Frame. “They built that house in 2 days!” It's amazing how fast the wood framing of a house can pop up, isn't it? ...
- Roof.
Selling your house seems like such a daunting task, but there are only three steps between you and your buyer: price, promotion, and presentation. Get these right, and Goldilocks herself will come skipping through your door, ready to proclaim your house 'just right'.
What are the 4 pillars of real estate? ›
The 4 pillars of real estate include: cash flow, appreciation, amortization and leverage, and tax benefits.
What are the core four in real estate? ›
While many property types fall under the “commercial” umbrella, the core four are industrial, multi-family, office, and retail.
An investment can be characterized by three factors: safety, income, and capital growth. Every investor has to select an appropriate mix of these three factors. One will be preeminent. The appropriate mix for you will change over time as your life circ*mstances and needs change.
What are the three important factors to evaluate investments? ›
- Your Investment Horizon – Think of your investment time horizon. ...
- Your Risk Appetite – Assess your ability to withstand fluctuations or loss in the value of your investments. ...
- Investment Knowledge: Start your investment journey by learning basics of investing.
3 Concepts to consider when choosing investment options
- Investment types. Start by understanding the four most common investment options and comparing their risks as well as their potential for return. ...
- Investment risk and return. ...
- Your time horizon.
