What is clear is that there has been a change in the real estate market nationwide over the past two years. What has been emphasized less is the fact that there are markets within markets. The overall perception is that the entire country has come to standstill, but is this the case? The Massachusetts market overall has slowed, but within the Commonwealth, there are pockets of opportunity, while other areas are tight and it is still tough to find a good deal.
Ultimately, the pull back in the market has given some buyers more time to find a home that fits their needs at a price that may seem better than one or two years ago. On the other hand with interest rates low, a stable job market and declining inventories, demand has picked up in many areas. With the ever changing market, what we know is that it is important for buyers to make educated decisions as market fundamentals continue to evolve in 2007.
There are many who believe that the most common way to accumulate wealth is through home ownership. Some homeowners have significant equity in their homes that have been built up over time, not always in a few years, which was prevalent in recent years. Nonetheless, regardless of up or down markets, over time, home ownership has proven to be a stable investment. If the timing is personally right to buy a home, today's home buyer must use the information available to make informed decisions.
There are many things that should be considered when buying a home. Since most homebuyers expect to buy a bigger and better home someday in the future, resale value is an important factor in decision-making. While no one can guarantee that your home will grow in value, there are steps you can take towards maximizing your potential gain.
Location is the most common factor in real estate making decisions. The idea is to buy a house that will appeal to the largest number of potential future homebuyers. A careful choice of location can minimize potential negative influences on future resale value, and maximize positive influences.
Here are some additional guidelines to follow:
1) Do not overanalyze. You may lose a lot of great opportunities by delaying.
2) Make offers. This is the best way to start communicating with the seller. They may reject you today, but come back in a week and negotiate.
3) Get the property under a contract first with contingency clauses. This will give you some time to gather more information and make a final decision.
4) Ask your real estate broker about the property value. You need to feel comfortable with the price you are paying; this can only occur by looking at market sales.
5) Your perfect buy should be a house in excellent condition and in a good neighborhood.
6) Your second choice should be a house that needs cosmetic work in a good neighborhood.
7) Inspect the property; try to get as many things fixed by the seller as possible.
8) Search around for financing; do not settle for one quote
9) Try to reduce your title/escrow charges; review them with an experienced real estate agent.
10) If you are not hiring an attorney, have the bank's attorney review your purchase and sale agreement. Typically, they will do this as a free service.
After finding the location in which you want to live, the above guidelines will give you a framework for buying the home. You should have some faith that you will be making a good investment over time; even more so if you make educated decisions from the start.
Questions or comments about this article? Contact the author - Mathew Roth