Evaluating Your Real Estate Options? Get Local.
Investing? Relocating? Evaluating your financial position? It’s reasonable to assume that Real Estate will be an important factor in your equation.
The relationship between our country’s economy and the nationwide real estate market is undeniable- the strength and weakness of each has an effect on the other. A sweeping assessment of the U.S. Real Estate Market is significant in use by the government and business as a whole, but not necessarily relevant to you. The most readily available information regarding the complexion of the Real Estate industry is generally much too broad to be helpful in determining what your personal options are. You’ve got to get local.
Tips to Assess and Evaluate the Real Estate Market in Your Area
By Mikkie Mills Editor’s Note: This was originally published on RISMedia’s blog, Housecall.
The real estate industry constantly operates in a dynamic state and undergoes fluctuation throughout the year. Making an assessment, evaluation or forecast of your local real estate market might be a tedious task, due to the ongoing market fluctuations, but here are some essential tips to make a smart analysis of your local real estate market.
1. Observe Local Pricing Trends
A fundamental approach to gain primary knowledge about your local real estate market is by observing the price trends. Acquire an accurate and firsthand knowledge about the current price trends and compare them with the price trends of the past. This will help you analyze the growth and expansion of the market in the recent decades and enable you to make an accurate forecast of the future. Note the varying degrees of prices of residential, commercial and agricultural property located in various areas and sectors within the market. This will help you get an insight into the highs and lows of the markets as well as the opportunities.
Author’s Note: Home sales and home prices are available to the general public. Your town’s property tax information is usually published on-line and includes factual details like sales price, date of sale, and taxable features. One caveat- physical condition of the home, upgrades, and circumstances of sale, i.e. short sale or foreclosure, arms-length of transaction, are all critical considerations for an appraiser and will effect his/her use of each sale as a comparable.
2. Identify the Catalysts
Once you have observed the varying price trends of different areas and the types of property available within your market, you are in a better position to look into the factors that influence the pricing fluctuation in the market. Real estate thrives on certain elements, catalysts, and macro or micro economic factors that steer growth, development, and expansion of the market. Infrastructural development such as roads, bridges, schools, hospitals and other public facilities tend to bring an instant upsurge in market growth. Aside from that, local regulatory policies, state and regional economy and tax and interest rates, as well as market demographics, play key roles in driving a real estate market.
Author’s Note: Some of the finer points of individual properties vs entire neighborhoods will also have an affect on value such as location within the neighborhood (backing to a main road, abutting greenspace or golf course, proximity to community amenities.
3. Assess Current Sales and Purchases
Keep a check on sales and purchases to determine if your locale is currently experiencing a buyer’s or seller’s market. Assess the number of houses and other property sold on a regular basis. Days -on-Market, is an effective tool to analyze demand and evaluate the market’s capacity to deliver. Moreover, this analysis will also help figure the buying trends of the future.
Author’s Note: Buyer’s and Seller’s Markets are a bit of a misnomer. It’s not the public’s perception of the direction the market is taking that counts. It’s how you control that perception in relation to handling contract negotiation.
4. Find Out the Types of Property Available in Your Market
Without sound, realistic and accurate knowledge about the types of property available in the local market, you cannot develop an accurate perspective of your real estate industry. Assess the property as per its type and category, such as residential, commercial or agricultural. (These main categories are further classified into secondary and tertiary classes.)
5. Compare With Suburbs and Vicinity
It is essential to keep a check on the market state and price trends in the outskirts and adjoining vicinity. Find out the pace of infrastructural development and the eminent landmarks and public service amenities available in the outskirts and if they are likely to influence your market in the future.
This article is intended for informational purposes only and should not be construed as professional advice. The opinions expressed in this article are those of the author and do not necessarily reflect the position of RISMedia. Reprinted with permission from RISMedia. ©2017. All rights reserved.
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Bill Salvatore / Arizona Elite Properties
Residential Sales, Marketing, and Property Management
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