Targeted market research is an often overlooked prerequisite for buyer and seller. Something as simple as the time of year could mean thousands in purchase price. It's not enough to simply know the average trends in your city. Understand the parameters of your current or desired property and learn how your local zip code(s) have responded to those property type(s). Below are a few tangible metrics that your real estate agent should be able to provide you with. It doesn't need to be complicated and it will arm you with the data needed to set your budget and spot a value (Buyer) or make necessary tweaks to optimize your listing (Seller).
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Desirable Schools
The chart below, extracted from the 2021 NAR Home Buyers and Sellers Generational Trends Report, provides a very insightful look at the priorities of the average home owner. The data tells us that buyers are far more willing to overlook imperfections and pay more for a property to achieve the desired school or neighborhood. Even if you don't have children, it's ideal to understand the quality of the area school districts prior to purchase in order to maximize resale value. Niche.com and U.S. News Highschool Rankings are resources that can be consulted for this purpose.
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Jobs and Job Growth
Many people elect to purchase a home in the near vicinity of their own employer. While convenient, this doesn't always make for the best investment. These homeowners are sometimes surprised by the lack of appreciation or even difficulty selling the home after they leave their job or the employer downsizes. Increasing jobs = increasing population and demand for housing. Knowing where the jobs are in your area and how they're trending should be a consideration in your buying decision in order to best position yourself for maximum return.
There are many online resources available to provide employment statistics. Most data is sourced by the U.S Bureau of Labor and Statistics and/or U.S Census Bureau. Using these sources directly will be the best way to ensure the most current and accurate data.
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Demographics
Knowing the composition of home buyers in an area is a helpful way to spot areas of resurgence and potential value.
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Safety
Begin with the end in mind. Your best choice of property could change dramatically depending on factors like how long you intend to stay in the area and how your family situation or job may change. The unexpected will always happen but fortune favors the prepared. Take the time to consider how you'd ideally like your next 5 to 10 years to look and plan for that.
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Amenities & Desirability
Begin with the end in mind. Your best choice of property could change dramatically depending on factors like how long you intend to stay in the area and how your family situation or job may change. The unexpected will always happen but fortune favors the prepared. Take the time to consider how you'd ideally like your next 5 to 10 years to look and plan for that.
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New Development
Begin with the end in mind. Your best choice of property could change dramatically depending on factors like how long you intend to stay in the area and how your family situation or job may change. The unexpected will always happen but fortune favors the prepared. Take the time to consider how you'd ideally like your next 5 to 10 years to look and plan for that.
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