Real estate trends differ depending on the location. That’s why, when exploring new cities or regions, it’s important to understand the local market inside and out. Failing to consider and adapt to the nuances of the territory you’re entering could ultimately hurt your business.
To find out more, we asked a panel of Forbes Real Estate Council members to share their top tips for moving or expanding into a new city. Here’s what they advise you consider as you look at a new area:
Members discuss some things to consider when looking to move into a new area.Photos courtesy of the individual members.
1. Learn The Market And The Community
Get to know the type of people in the neighborhood by spending time there, meeting local business owners and getting involved in the community. The market can vary in each area, so it best to track the time on market and prices homes are selling for. – Beatrice de Jong, Open Listings (YC W15)
2. Build Relationships In The Area
You’ve heard the cliche, “Your net worth is your network.” Even in a digital age, real estate is still a “relationship” business. Behind every check that’s written lies a human being. What’s the best way to relationship-build? Ask others about themselves more than talking about yourself. In conversation, use the word “you” more than “I.” Now you’re building a relationship. – Keith Weinhold, Get Rich Education
3. Consider Transportation Needs
If you are expanding to a new city, you should assess your and your employee’s transportation needs. How will the logistics for the location suit shipping and receiving of products and materials? Do you need to be so many minutes from a major public airport? How is the housing cost in relation to your employees’ salary? Entertainment? There is a lot more but you should be safe if you start here. – Michael J. Polk, Polk Properties
4. Assess The Market Needs And Local Competition
Having expanded my business to six major metros, I find out if there is a need for my business in that region. What are population trends, rooftop counts in the area and will those facts demonstrate increased growth to justify the investment expense? I research my competition in that area to get facts on their market loyalty. The decision to move happens if all of these factors say go forward. – Rita Santamaria, Champions School of Real Estate
5. Know Your New Investment Strategy
What worked in one market may not work in a new market. Make sure you understand your investment strategy and learn the nuances in the new market. Leaning on local experts is always key. It is easy to buy but hard to manage, so make sure you have the back end operations that know the area. Finding the deals can be tricky, so make sure you understand what is truly happening with the local economy. – Noel Christopher, Renters Warehouse
6. Optimize The Location For Your Employees
Try to optimize your office locations for where your current and future employees will live. When we determined our office location, we used public transit routes and drive-time polygons from our employees’ homes to minimize commute times. Less time in transit means more time at home and work, which is crucial for productivity and work-life balance. – Marc Rutzen, Enodo
7. Rent Before You Buy
While moving twice isn’t fun and can be expensive, it won’t be as costly as buying in the wrong location. Whether you’re moving your family or your business, it’s safer to rent until you are familiar with the area. What first seemed like a great site for your storefront may turn out to not have the foot or car traffic you need. – Jessica Pankratz, Town & Country Realty
8. Visit The Neighborhood In Person
You need to physically travel to, and spend time in, the new location. Drive the neighborhood streets, stay in hotels, visit at different times of day (morning and evening), on different days (weekdays and weekends), eat in local restaurants and talk to people. Online data and street-views can only get you so far — they also don’t reveal smells (factory or landfill) or sounds (traffic or trains). – Yousif Abudra, BENA Capital
9. Investigate Local Laws
The real estate industry is regulated on multiple levels (such as federal, state, city, etc.) Always be aware of all the intricacies of the local laws pertaining to real estate, and be sure to secure the attorney and other team members who are experts in local real estate. – Elliot Bogod, Broadway Realty
10. Consider What’s Around Your Location
It goes without saying that location, location, location is the most important factor in real estate. If you can find something that is either in a good school district, near walkable amenities (Whole Foods, Starbucks, etc.), or near mass transit, you’ll be in great shape when it comes to being able to cast a wide net among potential buyers. Focus on at least one of those factors for the best return on investment. – Brad Le, Compass
11. Look At The Trends To Find Diverse, Growing Markets
As a real estate investor, I want to invest in areas that are growing. I look for markets that companies and people are moving to. An educated workforce is important, and if it is a low-tax state that’s even better. I also want a diverse mix of industries that call the region home. That way the health of a region is not dictated by the health of a single industry. – Holly Williams, MQ Ventures
12. Take Your Time With A Decision
When moving into a new market, be sure that you can truly service it. Don’t be hasty or act prematurely. For example, while Manhattan has always been the primary residence for a majority of our clients, we made sure we were set up for success and had a nuanced understanding of trends, data and the needs of purchasers. Wait until you’re prepared enough to provide real value to buyers and sellers. – Cody Vichinsky, Bespoke Real Estate