Understanding home pricesOver time, the value of a property will go up and down. Over a long enough period of time, property values , for the most part, appreciate. But, in real estate there is always a certain amount of risk.
When your property appreciates you have more equity to borrow against, and you'll create a greater profit when you sell. But how will you know what you're investing in this year will appreciate over time? Property values go up and down for numerous reasons. The most important part is that you choose a real estate agent who knows the factors that affect local prices.
Many believe that the economy is the greatest factor affecting real estate appreciation. Naturally, there are a handful of factors on a national level that affect your house's value: unemployment, interest rates, consumer confidence, and more. But the most important things that figure your home's value depend on the local economy and residential market.
Access to services - Proximity to schools, jobs, and amenities also have a significant influence on all home buyers' decisions. So when it comes to retaining their value, these communities often appreciate better than others.
Recent home sales - You should receive information on the recent real estate sales in the areas that you'd like to live in from your real estate agent. You'll want to learn things like how long a house stays on the market and listing price versus selling price.
The appreciation history - Is the community believed to be desirable because of its location or affordability? Have home prices risen or declined over the last 5-10 years?
Local economy - Is there a good mix of job types in an area, or does it count on just one industry? Have companies moved into or away from an area? Are local businesses hiring? These items play a part.
|It's worthwhile to understand the factors that affect your house's worth. Visit this link for an evaluation of your home's value. Call me at 727-259-8953 or e-mail me if you have any questions at all. I'd love to hear from you.|