Real estate is an industry that has been around for a while, or at least for enough time to generate a few so called solid truths, like the importance of location, or that of low pricing. However, all these truths are challenged by today’s reality, and real estate agents and buyers should update their fundamentals in order to survive in the new world.
Current location versus future location
This may sound a bit strange, but current location should not be, in fact, the most important thing for buyers to keep in mind. Nowadays, buyers are advised to put things in perspective and get a clearer picture of how their neighborhoods will look 20 years from now. Since most buyers pay mortgages for their homes, this kind of perspective on their investment is essential, therefore, buyers and agents need to be prepared to ask certain questions.
Low pricing always wins?
Pricing is, of course, an important factor to keep in mind when searching for a home. But should low pricing always be the absolute winner? Experts now advise home buyers to forget about aiming for the lowest price in a decent neighborhood. The main problem is that buyers will never escape the stigma these poorly priced houses have. In other words, if someone plans to buy a home in order to sell it later, many gains should not be expected.
Remodeled kitchens are no longer ‘hot’
Whenever someone searched for methods to enhance the appeal and value of a property, the old discussion of granite countertops came into view. Remodeling your kitchen is, however, no longer what it used to be. Investing too much in your kitchen can actually lower your gain once you decide to sell your property, and experts advise on making some great impact changes, but only those that do not cost a lot of money.
Listing early is not necessarily the ideal choice
Listing early in the year was often recommended by experts, because of the spring break enthusiasm leading to more purchases. However, listing early no longer has the best appeal, and real estate agents should tell their clients to prefer listing by the end of March – start of April, to get on top of the list exactly when the moment is ripe. By doing so, they can greatly enhance their chances of landing a sale.
Low priced homes experience more price volatility
This is, again, something that people aspiring to become home owners should know. By purchasing low priced homes in less popular neighborhoods, they are not actually doing too much of an investment. Just like it happens to homes that are low priced in average neighborhoods, low priced neighborhoods as a whole need some kind of miracle to rise above their condition.
Real estate agents should create a comprehensive plan for buyers in order to help them choose the best property for the money they have at their disposal. In case of investments, the above rule is set in stone, at least at the moment, and it should not be overlooked.