Experts advise home buyers to get prepared with key skills and resources before entering today's competitive and complex real estate market.
New and savvy home buyers need two essential skills give buyers the edge in hot real estate markets, according to Bradley K. Tuttle's Real Estate Update. The two key skills are validation of the true-value of a home and revved-up decision making.
Skill 1 – True-Value Validation
Today, million dollar homes are no big deal. Unlike a decade ago, the steady rise in real estate prices has resulted in seven figure price tags seeming commonplace. Much of the home price appreciation is due to supply and demand, and the ability to get low interest mortgages.
The home itself typically has not changed – it wasn't remodeled with new materials or increased in size. As a result, buyers are paying more for the same home.
For example, Boulder County prices increased 48.7 percent from 2011-2016, according to RE/MAX of Boulder's annual Boulder Valley Real Estate Report.
As prices rise, assessing the true-value of a property is increasingly important. Factors like location and the quality of design and construction bring value to a home that is likely to carry into the future.
Get to know your area and how real estate has performed over time. This is one of the values a real estate professional brings to the home buyer. Tap into that knowledge by asking about the historical data early in the process, before you are engaged in an offer on a home.
The more you understand about the influence of location on real estate value, the more likely your real estate purchase will not only retain its value, but will appreciate over time.
Skill 2 – Revved-Up Decision Making
High demand and a low number of homes for sale can drive "Days on Market" down and selling price up.
In Boulder County, the number of homes for sale was down 60 percent from 2011-2016, says the Boulder Valley Real Estate Report. The lack of inventory creates a competitive marketplace, particularly for homes priced under $1 million.
Homebuyers will most likely be making offers on a home that receives multiple offers. To get prepared to win, talk to your Realtor about strategies for beating out other offers. Select an experienced real estate professional who knows the neighborhood well and has a proven track record of helping client buyers achieve their goals.
Ask for details on past multiple offer situations. Questions to ask include:
- Which strategies are there?
- How do you decide which strategy to use?
- What are all the common mistakes buyers make?
The buying process itself will likely happen quickly. Do your homework and talk with your Realtor to get prepared to make decisions quickly.
Typically, each buyer only experiences the emotionally-draining roller-coaster contest of multiple offers a few times over the course of a lifetime. Buyers benefit from having an emotionally detached negotiator on their team.
The best advice for home buyers: Be prepared and be confident and don't wait to buy a home. While Boulder County home prices are high, statistics from SmartAsset show Boulder is the No. 1 market in the nation for strong and stable price appreciation.
Read the full article at http://www3.realtytimes.com/nl/nlpages213/1HomeBuyingSkills.htm?open&ID=bradleyktuttle
Owner and Founder
RE/MAX of Boulder