Buying a home is a huge investment. In this state, it’s up to the buyer to do their due diligence when purchasing a home. That’s a lot of pressure, right? This article will delve a little deeper in how you can be sure you follow the steps toward making a decision that is right for you.
The real estate market changes all the time. The number of buyers in the market, amount of listing inventory, interest rates, and the economy all play a role. Buyers want to make sure that when they buy a home it not only meets their housing needs and the emotion around what homeownership means, they also want to make sure it is a strong financial investment.
Homebuyers are striving to be savvy investors and savvy investors need information. A Comparative Market Analysis (CMA) is a great way to look at comparable sold properties and see how these compare with the property the buyer is interested in. But that primarily provides a moment-in-time snapshot (although there may be historical figures that are also incorporated).
I encourage my buyers to dig a bit deeper if they want to learn more about the historical trends in the area to learn what may be coming in the years ahead. Some additional information that buyers may want to consider obtaining includes:
- All the relevant property tax information for the property – historical and current
- Information on how recent sales prices relate to assessed values
- A summary of current activity – active listings and homes under contract
- A summary of neighborhood sales over the last five years
- Historic appreciation information for the neighborhood
- Historic appreciation information for surrounding neighborhoods
- Information on zoning and future growth areas
- Information on local building permits
- Information on both CC&Rs and Homeowners Associations and how they have typically responded to change, improvements, and how they address rule adherence
Going to the effort to acquire this additional information is especially important when negotiating because it can help the buyer see the true potential and value of the home they are buying. It can help them to decide what is a fair offer at the outset and how to negotiate through any counteroffers made by the seller, even if at first glance the counter seems high. In addition, the homebuyer can assess whether paying a little more for the property now will be recouped based on the property’s historic performance. In the event the homebuyer is trying to decide between two different properties, this additional information is an invaluable tool to help determine which has better long-term investment potential.
When you are ready to buy your next home, obtain this information to help you make the best buying and investment decision possible and give you that extra edge. That is where I come in! Remember, not all homes and neighborhoods are created equal. If you would like to learn more about how I help buyers learn about their property potential, reach out to 206-762-0682 or send an email: email@example.com