Unless you’re directly involved in real estate, it can be difficult to research and understand the current market. There’s a lot of data to look at, and it can be overwhelming. However, understanding the market will be the foundation for your next move, and indicate whether it’s a good time to move forward or hold off.
What factors should I consider when evaluating a real estate market?
The value of a home will fluctuate over time, and understanding the current market can help you determine when that might happen. If you’re seeing a huge drop in property value, don’t make any drastic decisions. In the meantime, take a look at historical data, and how the market has changed in the area you’re looking to buy/sell. If there are big spikes of ups and downs, that means there are more risks involved. Wait until the market aligns with your goals. Trust us, we know it’s hard to be patient. But waiting for the right time will pay off in the long run.
More often than not, these expenses add up to more than you think. These expenses include interest, insurances, taxes, etc. Make sure to keep tabs on taxes, since this isn’t something you can control. It has a direct impact on cash flow that can come out of your property. In general, taxes should fall somewhere between 1 and 1.5% of the home’s value.
Physical home attributes
It goes without saying that not every house is built the same, and the value of each home will depend on a variety of physical factors. This includes the style of the home, age, and any recent repairs that have been done. There are other areas of the home that can increase its value, like a pool or a home office space. When you’re housing hunting, you want to make sure the market you’re looking at has similar properties. And before the house hunting begins, make sure you know exactly what you want. It will help dwindle down the pool and make decisions easier.
Evaluating the real estate market goes beyond evaluating properties. It’s also about who is living in those properties, and why it is that they chose to live there. It’s ideal to live in an area where multiple industries are driving employment. To find out more information on what the employment rate is in the market you’re looking at, we recommend looking at the Bureau of Labor Statistics. Take a look at the national average, so you know how your market compares.
If you don’t have the time to evaluate the market and/or need to move quickly, Home Buyers Express can help. We provide a cash offer, and all it takes is four simple steps. Our team consists of reputable, trustworthy real estate advisors, and we can put you in the right position to work with your current situation. Contact us today!