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To take much of the guesswork out of your consideration about whether a particular property in town is a good investment, you can check on the actual selling price of similar homes in the neighborhood.

Some sales information, such as the selling price, the financing terms, and the transaction dates, is public information. Your Realtor will have record of all recent sales. You can find out how properties have been appreciating, based on actual sales, rather than from the neighbors (they could be wrong!). Driving by comparable homes can give you an idea about how they compare with the property you are considering. Your Realtor may have seen these homes and can give you additional information to help you make a decision.

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