Buyers Guide - Know the Market
The asking prices of most properties
that are for sale reflect present market conditions and recent
sale prices of similar homes in the area. When homeowners
price their homes they try to walk the fine line between getting
the highest price and ensuring the asking price is competitive
enough to attract serious offers. While most Selling Agents
advise their clients to realistically price their homes in
order to attract acceptable offers within a reasonable period
of time, some properties may not be properly priced and you
should know this before making an offer.
Before making an offer to purchase
a home, you should ask yourself the following questions:
- What have similar properties
sold for in the immediate area?
- How long were they on the
- How does this one compare?
- Is it over-priced, under-priced,
or fair value?
- What type of market is it
- is it a Seller's, Buyer's or a Balanced market?
By having this information
at your fingertips you will be in position to negotiate the
best price and take advantage of any opportunities that may
show up. This is where the experience and knowledge of a good
realtor is invaluable. Hocking Real Estate Services spends
a lot of time and energy making sure they know their local
market inside and out. They keep their finger on the pulse
of the market and have the resources, connections and ability
to keep you up-to-date with its constant changes. They know
all of the properties currently for sale in your area and
are literally your best resource for finding the perfect home.
The main factors that affect market value are...
- Availability of community
amenities, such as public transportation, parks, stores,
churches and schools
- Quality and consistency
of neighborhood planning
- Future development plans
and local zoning
- Style, layout, size, age
and quality of construction of the building
- Size, shape, privacy and
landscaping of the yard
Condition of the Home:
- First appearances
- Floor layout
- Quality and appearance of
- General overall condition
of main systems (roof, furnace, electrical system, central
- The asking and selling prices
of comparable neighboring homes
The best way of establishing
a range of value for a property is to have your REALTOR prepare
a general market analysis of the neighborhood you are interested
in. This will give you a good overview of the current market
and will show what comparable properties have been selling
Market Conditions and the Economy:
- Number of homes currently
on the market
- Number of people looking
- The state of the local and
- Current mortgage rates
No matter the condition or desirability of a property, its
value will be affected by current market conditions. Here
are the various conditions you may encounter and how they
will affect you:
- Balanced Market:
The number of homes on the market is equal to the number
of buyers (supply equals demand). In this market, prices
are stable and homes sell within a reasonable period of
time. It is a calm atmosphere with Buyers having a satisfactory
number of homes from which to choose.
- Seller's Market:
The number of Buyers exceeds the number of homes on the
market (demand greater than supply). In this market prices
are increasing and homes tend to sell quickly. As a Buyer
you will probably have less negotiating room and may experience
competing offers when trying to purchase your home.
- Buyer's Market:
The supply of homes exceeds the number of Buyers (supply
greater than demand). In this scenario prices tend to drop
and the properties stay on the market longer. As a Buyer
you will have more selection and less competition and thus
be better able to negotiate a good deal.
When you understand current market conditions, you are better
able to position yourself as a Buyer. It helps to know if
you are in a Seller's, Buyer's or balanced market when deciding
what price to offer. In a Seller's market, there is little
selection and you may have to make a full-price (or even higher)
offer if the home is properly priced in order beat the competition.
In a Buyer's market, you have a lot more selection and plenty
of room to negotiate. In a balanced market you will find a
good selection of homes for sale and have a reasonable amount
of time to decide on a home and negotiate the price.
Hocking Real Estate Services
shares the same goals as you…getting the appropriate
results in a timely and professional manner.