Overall this past year has provided so much needed clarity in the housing market and what is to be expected for the future of home values. The biggest adjustment in buyers and sellers minds is understanding that the Real Estate boom was not normal and the real estate market is correcting itself to where it should have been. Understanding the history of home values and how on average a 3% increase/year was normal and realizing our home is most people’s largest long term investment is a start. Returning to the mindset that we keep and maintain our home, so that one day we will have no mortgage payment and have an overall average steadily increasing asset that we can pass down or provide income for retirement.
Much like the stock market a homes value will increase and decrease and many factors may cause more drastic ups and downs that every home buyer should be aware of and as your Real Estate expert it is my #1 priority to help you find the home that not only meets your needs but has the best chance of overall highest increased equity for the future.
Here are 10 factors that can change the value of your home in a positive or negative way:
1. National or Local Economy
2. Condition of the home
3. New or widened road
4. Area businesses and conveniences
5. Area School performance
6. Condition of community or area homes
7. Proximity to high paying jobs
8. Proximity to recreation (water, mountains, etc.)
9. Values of surrounding homes
10. View
Also, remember that the value of your investment is only realized when you sell. Buy Low and Sell High! Currently, overall we are in a buyers market and are experiencing low before boom home prices and historical low interest rates. Hot areas are not as affected but undesirable areas have seen huge price reductions. You may see a beautiful home with everything you are looking for an unbelievable price, but find out it is in an undesirable location with a history of no value increase or worse a decline in value.
This is the best time to buy as you are starting to hear more and more positive news concerning the overall economy as employment is moving more and more to stability. Since most people do not have the cash to outright purchase a home to get most return, having a large down payment is next best option but for most homes you will need a minimum of 3.5% of purchase price to put down to purchase a home. If you want to take advantage of this buyers market but do not have the minimum 3.5% down payment or you have another reason, such as low credit score or have a home to sell, etc., there are other options to purchase, such as HUD Homes $100 down program, Owner Financing, Trade your home, Lease Purchase, or Lease with Option to Purchase.
Contact me today to evaluate your home search or to explore your options to purchase low and begin a path for financial success!
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