Links:
|
Buyer Information
Know The Market
|
      
|
When Buying, Know the Market
The asking prices of most properties that are for sale reflect present
market conditions and recent sale prices of similar homes in the
area. When homeowners price their homes they try to walk the fine
line between getting the highest price and ensuring the asking price
is competitive enough to attract serious offers. While most Selling
Agents advise their clients to realistically price their homes in
order to attract acceptable offers within a reasonable period of
time, some properties may not be properly priced and you should
know this before making an offer.Before
making an offer to purchase a home, you should ask yourself the
following questions:
 |
What have similar properties sold
for in the immediate area? |
|
|
How long were they on the market?
|
|
|
How does this one compare?
|
|
|
Is it over-priced, under-priced, or
fair value? |
|
|
What type of market is it - is it
a Seller's, Buyer's or a Balanced market?
|
By having this information at your fingertips you will be in position
to negotiate the best price and take advantage of any opportunities
that may show up. This is where the experience and knowledge of
a good real estate agent is invaluable. Real estate agents spend
a lot of time and energy making sure they know their local market
inside and out. They keep their finger on the pulse of the market
and have the resources, connections and ability to keep you up-to-date
with its constant changes. They know all of the properties currently
for sale in your area and are literally your best resource for finding
the perfect home.
|
|
The main factors that affect market value
are... |
Location:
|
|
availability of community amenities,
such as public transportation, parks, stores, churches and schools
|
|
|
quality and consistency of neighborhood
planning |
|
|
future development plans and local
zoning
|
Property:
|
|
style, layout, size, age and quality
of construction of the building |
|
|
size, shape, privacy and landscaping
of the yard
|
Condition of the Home:
|
|
first appearances
|
|
|
floor layout
|
|
|
quality and appearance of fixtures
|
|
|
general overall condition of main
systems (roof, furnace, electrical system, central air, etc.)
|
Comparable Properties:
|
|
the asking and selling prices of comparable
neighboring homes
The best way of establishing a range of value
for a property is to have your real estate agent prepare a general
market analysis of the neighborhood you are interested in. This
will give you a good overview of the current market and will
show what comparable properties have been selling for recently.
|
Market Conditions and the Economy:
|
|
number of homes currently on the market
|
|
|
number of people looking to buy
|
|
|
the state of the local and national
economy |
|
|
current mortgage rates
|
|
|
Market Conditions: |
No matter the condition or desirability of a property, its value
will be affected by current market conditions. Here are the various
conditions you may encounter and how they will affect you:
|
|
Balanced Market:
The number of homes on the market is equal to the number of
buyers (supply equals demand). In this market, prices are stable
and homes sell within a reasonable period of time. It is a calm
atmosphere with Buyers having a satisfactory number of homes
from which to choose.
|
|
|
Seller's Market:
The number of Buyers exceeds the number of homes on the market
(demand greater than supply). In this market prices are increasing
and homes tend to sell quickly. As a Buyer you will probably
have less negotiating room and may experience competing offers
when trying to purchase your home.
|
|
|
Buyer's Market:
The supply of homes exceeds the number of Buyers (supply greater
than demand). In this scenario prices tend to drop and the properties
stay on the market longer. As a Buyer you will have more selection
and less competition and thus be better able to negotiate a
good deal. |
In Summary:
When you understand current market conditions, you are better able
to position yourself as a Buyer. It helps to know if you are in
a Seller's, Buyer's or balanced market when deciding what price
to offer. In a Seller's market, there is little selection and you
may have to make a full-price (or even higher) offer if the home
is properly priced in order beat the competition. In a Buyer's market,
you have a lot more selection and plenty of room to negotiate. In
a balanced market you will find a good selection of homes for sale
and have a reasonable amount of time to decide on a home and negotiate
the price.
|
|
Great Beginnings start