June 23, 2006, Newsletter Issue #86: Lisa Vander: Real Estate Tip #4

Tip of the Week

Investigate real estate markets. Take a look at how much inventory is on the market, as well as pricing and vacancy rates. Be conservative when considering appreciation expectations. I advise my clients to use appreciation rates of 2 percent to 4 percent per year. This way, it the market outperforms that year you will be pleasantly surprised. In contrast, by using numbers that are unrealistic or too aggressive, you will be disappointed when your expectations are not met, and might be tempted to jump out of the market too soon.

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