No matter if you are a buyer or a seller, knowing the local real estate market is the key to a successful real estate transaction.
Being familiar with local real estate market trends is extremely important to both buyers and sellers. However, it is a misconception that they are the only ones who should be interested in this type of information. In reality, all homeowners should pay attention to current and future trends of their local real estate markets. That way they can make the best choices in regard to their property. Therefore, in order to make any smart move related to real estate, it is important to know how to evaluate a local real estate market.
How to evaluate local real estate markets
It is true that you can always hire a professional to help you resolve this uncertainty. At the same time, you should do some research on your own as well. It is certainly not desired for you to be totally clueless. Even if you are moving in your own area, the same advice applies. So, if you have no idea where to start, here are the best ways to get familiar with your local real estate market.
- Research all available data
Brokerages are a great idea for your first stop. They often provide quarterly market reports. It gives the buyer or the seller a great idea of the past dynamics. On the other hand, be very careful with this type of data, because it reflects the past. Who is to say that the same trend will follow. Thus, you should be aware of this valuable data but don’t depend on this one source of information alone. Looking at USA Housing Market Predictions 2020 is a great way to supplement the findings provided in the reports.
2. Knowledge is power, so get informed
It is vital to understand that every type of information about the local real estate market holds some significance. For example, knowing the difference in price between renovated and non-renovated properties. Know which agents have the best ratings in the region that interests you. There are many more particularities that you should be informed about.
3. Use the internet to your advantage
Browsing through the web is a great way to start gathering relevant and useful information. Thereupon, you must wisely perform the reaches. Make sure you use relevant terms when performing the searches on the search engines. For instance, you can use the web to check out all the neighborhoods that you are interested in. This way, when you visit them you will have a much better understanding of your soundings.
4. Having one source of information isn’t enough
Getting information from only one source is not a good strategy. Hence, make sure that you broaden your information gathering. You can always do this by watching or reading the local news, following local community websites, being active on social media, etc. There are many interesting sources that you can use to your advantage. Thus, if you decide to sell your home this spring, it is never too early to start evaluating your local real estate market.
5. Deliberate key market indications
This basically means that you need to have a clear vision of whether you are making a purchase that is to be used short term or long term. In essence, if you are looking to settle down and buy a property that you will use for many years to come – focus on local school systems, a variety of employers available locally, and everything else that you deem important to you and your family. On the contrary, if you are looking for something that ought to be used in short terms, you might need to focus on hot regions that are suitable for renting or reselling.
6. Zestimates are not to be trusted 100%
When you visit Zillow, you can get an estimate on your property. This is at the same time both good and bad. The great thing about this popular website is that you can get an idea of what your home is worth. Also, you are able to track changes in the market during a greater period of time. However, the price that is estimated cannot be always accurate. Use it to get an idea, but not to finalize the asking price of your property.
7. Evaluate local real estate market like the pros
Local title companies are well-known for providing extremely detailed real estate market reports. Most professionals use these reports for their work. Especially, for listing information. Therefore, why not use it to gather significant knowledge about the local real estate market that piqued your interest?
8. Get your homework done in advance
Get familiar with the area you like before you hire a real estate agent to assist you with your buying. Do not even think about starting the buying process before doing this. If you skip this step, you might experience major regrets down the line.
9. Comprehend the market sequences when evaluating a local real estate market
Here is how it can be done:
- Get familiar with the property that you are selling or buying
- If you are a buyer be certain what your budget is and if you are a seller be certain of your minimum selling price
- The more you risk the more likely it is that you will benefit from your future transaction, etc.
10. Big listing platforms should attract your initial focus
Last but not least, make sure you know what is pending and what is active. A great way to determine if an area has potential is to drive around and look for new buildings or homes being constructed. If there are many it is a great indicator that the chosen area has a lot of potential.
To summarize, doing your due diligence is key when doing anything real-estate related. You do not have the luxury to be lazy and wait for the needed information to fall into your lap. Buckle down and throw on your thinking hat. It is time to learn useful things about the local real estate market.