Ready To Buy? Top 10 Things To Know While Finding Your Dream Home
We have compiled a list of things to consider while doing your research about the dream home you have been looking at. The initial start is finding of the real estate market and choosing the area you would like to live in. Agent ReVa was built to assist first time home buyer in making informed decisions, we hope this helps you in your home buying journey. For more assistance, talk to our AI assistant chatbot. Connect with ReVa!
- The current price trends in the neighborhood you are interested in
The best ways to keep up with the market is to follow the news and articles regarding it. There are many sources you can go to see updates of the market. One of our favorites is the Real Estate Market Trends and Reports. This website has the latest reports on what is happening in the real estate market for your town. We would also recommend paying attention to the local news as any significant increase or decrease in prices is always announced. Lastly, if a house in the neighborhood of interest is having an open house then definitely pay it a visit. Talk to their real estate agent about the current trends and pricing for a rough estimate of the market’s situation. You will learn a lot of about the market and the price trend for the area of interest.
- Check if the average home price is more than in other neighboring towns
Different neighborhoods have different pricing. It is dependent on infrastructure, value, age, property size and type, and other conditions. Pricing is also dependent on how close you are to the city’s center and the transportation options it has. One factor to keep in mind is that some neighboring towns can have drastic changes; it is good to monitor prices variations to nearby locations as well.
- Favorable infrastructure improvements to the area you’re studying (ie. subway, shopping mall)
New developments such as a bus terminal or expansion of the rail can increase the pricing of the area you are interested in. It is important to search and explore the area you are interested in to ensure you have the basic necessities such as transportation options, grocery store, and a shopping mall.
- Compare the average sale prices in your area from year to year to see if there is price appreciation
This is an indicator of the annual growth you can expect, and also the profit that could be made. Investing in property that shows continuous appreciation is an indicator of a successful property with long-lasting value.
- Go into the MLS and find out the total number of listings taken each year, and then compare that to the total sales to see if the market is absorbing properties
The multiple listing services (MLS) is a wonderful tool to search for available properties. It gives you the history, description, price, and pictures of the property. A good way to check the current market would be to see the number of listings that are available. The more availability means that fewer people are purchasing the property. This could indicate that the market is not doing well, or inflated prices.
For the Canadian market, click here: https://www.realtor.ca/Residential/index.aspx
- Analyze your area in terms of the economic fundamentals (ie. health of job market)
The economy is also a good sign of the how the housing market is doing. If the economy is in a flux then housing will be cheaper, however, if the current economy is recovering and doing better, chances are that the prices will be generally higher. This is because the consumer is spending more money, more job creation, and more taxes coming into the government.
- Determine if this is a buyer’s market or seller’s market
This is pretty straightforward. If there are more people buying than selling, it is an indicator of rising real estate prices. A buyers market is when the supply of available properties exceeds the demand of people seeking to purchase. For example, if there are a lot of properties for sale that exceed the number of sales, this creates a buyers market. This is the ideal time to buy property as you might get a lower cost than you would in a seller’s market. A seller’s market is when there is an abundant amount of demand that exceeds supply. This may create bidding wars as there are more buyers seeking to purchase property, but there are not enough properties available. This is a good time to sell your house as you can secure a higher price, or sometimes buyers may keep on renting their current property to save up and compete in the market.
- Check out the population growth rate in the area
Check the local census to see how much is the overall growth percentage. If there is a higher than average increase in the population in the city you are eyeing, it probably means that the housing prices are generally higher. There will be more people that will be interested in the property, and also indicate that price will increase over time.
- New jobs bring new homeowners. Is there a net job creation trend in the area?
Scan the local news listing and job boards to see what kind of jobs are being asked for. If there are high industrial companies set to be opening, this means that more people will be coming into the city. This could increase the price of an average home surrounding that area.
- Are single-family homes selling faster than condos, or are condos dominating in your marketplace?
Housing is expensive; if condos are being sought after it is because they are a bit more affordable than a housing unit. Condos do also see a higher annual growth in their worth than houses do, depending on their area and age. If a house seems to be a little out of your budget, a condo is a good place to start.
If you already hit these checkpoints but are unsure of the buying process then click here for a free personalized home buying plan. It will help you with every step of your buying journey, with tips and tricks to help you save money and make informed decisions. Any Real Estate Questions? Just ask ReVa!