Market Research; IT’S IMPORTANT

Market Research: It’s Important

Just as you hope to buy a high-quality home at a low price, those selling a home want the opposite.  They want to sell their home for as much as possible while keeping their listing competitive.  This is where your understanding the housing market will be crucial.

Almost all realtors advise their clients to sell a home at a reasonable price.  However, depending on the state of the housing market, this estimation may be off.  There are some important points to take into consideration when you are determining the worth of a home you wish to purchase. 

1. Check to see if the price of this listing is comparable to similar homes in the area.
2. Did those listings sell quickly? Or did they take longer to sell?
3. What are the differences between the other listings and the property of interest?
4. Is the market in my favor or not?

Getting to the bottom of these questions will save you from a world of headaches and messy negotiations.  Our advice?  Invest in a good realtor.  Having a good realtor will ensure you get the best price for the property you want.  Not only do they understand neighborhood and properties, they also are fluent in the housing market.  They can let you know if the market is in your favor or not. 

Now the real question is: how do you know if a market is in your favor or not?  This is largely affected by the ratio of buyers to sellers.  Perhaps you have heard the phrase “seller’s market” or “buyer’s market” tossed around.  If there are a lot of people looking to buy a home compared to the number on the market, it is a “seller’s market.”  The inverse is true of a “buyer’s market.”

In addition to knowing the market, you will want to understand what makes a home have more value.  Here are some things to look for:

Neighborhood

It probably comes as no surprise that some neighborhoods are more desirable for home buyers than others.  Depending on local attractions, quality of schools, and more, a property may be worth more. 

Listing

Of course, the actual property, itself, has value.  If a listing is in good condition, has up-to-date appliances, and quality maintenance systems, the property will be worth more.         

Comparisons

As was mentioned earlier, a lot of home listings have competitive rates.  This means a listing should be comparable to similar homes in the neighborhood; 

Choosing Location

When looking into buying a home, there is more than the listing to consider.  After all, you are not just committing to a home – you are committing to a neighborhood.  Of course, everybody has different community ideals.  Here are some tips that might help you find the neighborhood that is right for you.

Visit

Especially if this is an area that is new to you, take the time to visit.  A quick walk or drive in the neighborhood will help you decide if this is a good fit.

Essentials

While people may prioritize different attractions, there are some locations you may want to be close to.  For example, check to see what your commute to hospitals, supermarkets, and schools would be like.  This can help you determine if this neighborhood will fit your day-to-day lifestyle.

Area Planning

It is always a good idea to research the community planning in the neighborhood.  Is the area slowing down or heading for expansion?  Are there future construction projects in the works?  If a deal seems too good to be true, it is possible the area is about to undergo dramatic changes.

Other Listings

It is always a good idea to see if there are other listings in the area.  Compare pricing and condition of the homes.  This can help you be a more competitive buyer and potentially score a better deal on the property.