“From an investment point of view, it’s extremely important to buy with the concept in mind that you may be selling within a 5 year period. Keep this in the forefront when purchasing properties. When I purchase property, remodel or build, I always invest with the concept of resalability as the first priority. If you buy or build something too specific to your individual desires, you may limit resale value to the general population who might be interested in purchasing that property in the future. In real estate, less demand equates to lesser value.”
Before you Buy
I would be delighted to meet with you and discuss your goals and help determine what areas and properties might be a good fit for you. Generally speaking, I like to make sure my clients are educated and fully aware of the market and it’s general trend, particularly as it relates to the specific area that you might be interested in. Not all areas move together in unison and it is critical to understand your specific market, not only in terms of area- but in terms of price as well. I can analyze a market quickly and efficiently for you so you are better prepared when you do finally find that perfect property. I often advise clients to watch the market carefully before jumping into buying. I initially set my buyers up on an auto email system which pulls directly from the MLS and sends critical information to you so that you are fully informed as to price statistics and general trends before buying.
Buying a Home
One of the biggest mistakes buyers make is not interviewing several agents. Sellers interview agents, so should buyers. Has your agent bought and sold property for him or herself? Has he or she built homes before? This helps your agent to be more knowledgeable about value and can make a big difference to you in your eventual resale! Remember that most buyers sell within 3-5 years. If you don't buy your property right, you may not make your money back when you sell. Does your agent know how their area is being affected by global events and financial markets?
These issues all come into play when buying what will be for most people, the largest purchase of their lives! It is important for the agent representing the buyer to be aware of historical sales perspectives to give you some background on what type of annual appreciation you might expect, and which areas are rising faster than others. What negatives might be affecting the area, and how are these translating to sales? What positives are affecting the area and how are they translating to sales and possible appreciation? Remember that value is also a function of supply and demand.
The smaller the supply the greater the price! Know how many homes are on the market in your price range, how many are selling, and how quickly. Find out what homes actually sell for, versus the listing price. This can be expressed as a percentage and can be invaluable when deciding on an offering price.