Home buyers entering the real estate market should be aware of certain market conditions and trends before they consider making any offers. Understanding the real estate market can help home buyers make good decisions that will lead to a successful home purchase. If you're a new home buyer who is just now entering the market, here's what you need to know about the areas where you're trying to buy a home.
A home seller's market is a market condition that occurs when inventory is low, prices are high and buyers must compete against one another to make a successful home purchase. Under these circumstances, sellers must make their offer quickly. Negotiating for a lower price is not usually an option in a seller's market. Putting the best offer first is a good way for buyers to avoid a bidding war.
A buyer's market is a market condition that occurs when inventory is high and buyers have their pick of many homes. Prices are much more affordable in a buyer's market. In this kind of market, buyers can take a more leisurely pace when purchasing a home, and are more likely to negotiate good deals during the home buying process.
Before making an offer on any home, buyers should explore neighborhoods where they'd like to buy. Identifying the best neighborhood for their needs can help a buyer avoid making an offer on a home that is in a less favorable location. When exploring neighborhoods, buyers may take the following into consideration:
- Proximity to local businesses, schools and public services.
- Parks and other fun amenities.
- Beauty or aesthetics.
- Commute times.
Once a buyer has identified a neighborhood or neighborhoods that meet their criteria, then they can narrow their search to homes only in those areas.
Cost by Neighborhood
Some neighborhoods will cost more money than others. Understanding the subtle differences in cost from one neighborhood to another can help a home buyer focus their search on neighborhoods that are well within their budget. Home buyers who have a hard time identifying the cost from one neighborhood to the next can ask their real estate agent for guidance.
Before buying a home in any community, it's important for home buyers to determine whether or not there is an upward trend for homes in the neighborhood. Neighborhoods where home values are flat or declining may be a bad investment. Overall, the best rate of growth is relatively even and measured. Sharp increases in a short period of time could be indicative of a housing bubble, which could leave home buyers underwater on their mortgage when the bubble bursts.
Clarksville home buyers who aren't sure what the value trends are in the communities where they are thinking about buying a home should work with their real estate professional. A good real estate professional will know the value trends in communities where they work, and will be able to help home buyers identify the best value for their money.
Contact Your Real Estate Professional
If you're a home buyer who is trying to understand the real estate market where you live, contact your real estate professional. Your real estate professional can prepare you for the conditions where you want to purchase a home and can also discuss strategies for buying a home in your market.
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