Understanding Home Prices
Over time, the value of a house will fluctuate up and down.
Over a long enough period of time, home values , for the most part, appreciate.
But, of course, there is always a certain amount of risk in real estate.
When your home appreciates you have a bigger asset to borrow against, and you make a greater profit when you sell.
Property values fluctuate for different reasons, so how will you know what you're purchasing now won't depreciate the day after you close?
The most important aspect to consider is that you choose an agent who understands the factors that affect local prices.
What is the most crucial factor impacting real estate appreciation? Many assume that it's the economy.
there are a lot of issues on a national level that affect your home's value: unemployment, interest rates, consumer confidence, and more.
But the most important factors that determine your property's value are particular to the local economy and residential market.
Access to services - People typically want homes in the areas with the best and most convenient amenities, such as our schools and work.
So when it comes to holding their value, these regions often appreciate the best.
Recent home sales - You should receive facts and figures on the recent real estate sales in the neighborhoods that you're asking about from your real estate agent. You'll want to learn figures like time on market and asking price as opposed to selling price.
The appreciation history - Is the area thought to be desirable because of its location or affordability? Have house prices risen or declined over the past 5 to 10 years?
Economic factors - Have businesses moved into or away from an area? Are local companies hiring? Is there a fair blend of work in an area, or does it count on just one industry?
All these play a role.
Knowing the factors that impact your house's worth is important.
Get an assessment of your house's value here
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if you have any questions at all. I'd love to hear from you.