One of the biggest mistakes people make when buying homes is they rely solely
on “local neighborhood market analysis information” to determine the right price
to pay for a home.
Before you buy or refinance your home, INSIST on seeing a “total market
overview” of exactly what is going on in the ENTIRE market. Then narrow your
analysis to local market information.
Why do I say this? Because you want to know two things:
1) What is the ENTIRE market doing with values? Are they going up? And by how
much?
2) What is the specific area doing with market values? How does it compare to
what the total market is doing? Are the growth rates the same, lower, or higher
than the overall market?
Understanding these parameters will save you thousands of dollars when you
make an offer on a home. I frequently perform both of these analyses for my
buyers, in an easy to understand format, so you know EXACTLY what you’re
buying!
The general location of the home you’re considering could determine how happy
you’ll be living there, and what kind of an investment you’re buying. Here’s an
important tip that will almost always make you money…
Buy The Midrange Home In The Best Neighborhood You Can Afford
Why do I say this? Because the better the neighborhood, the better the
appreciation for you over time. And if you buy the midrange home, the home will
“generally” appreciate faster and greater than a higher priced home in the same
area.
Plus, you will most certainly spend money updating or decorating your new
home, and you don’t want to get “upside down” on your home’s value after
spending money for improvements.
Andrea Rothman is a REALTOR in the SF East Bay. She has an MBA in Marketing
and an MA in Economics. With over 20 years of sales experience, she has become a
successful realtor, specializing in first time home buyers and sellers who are
looking for less hype and a more down to earth sales approach. Visit her website
at http://www.bay-homes.net.
