Research Markets

Research Markets

It's a good idea to do some fact-finding before you start looking at
homes - before you get caught up in the excitement and stress of
the shopping process.

Hopefully you've gotten to know the communities you're
considering during the organizational phase. Now it's time to narrow
the search and find your new home.

Review your notes and decide where you want to conduct your
home search. Use our community research checklist to help you
decide on the right location. Your agent can help you review
recent sales activity in the area to get some idea of what you can
expect to find in your price range.

Gauge Market Conditions

Real estate markets are highly cyclical. The current status of the
market can have a significant effect on your homebuying strategy.
Try to develop an understanding of the state of the market, so
you'll have some idea of the conditions to anticipate when
shopping - and a feel for how hard you can bargain when
negotiating.

What's Best - Hot or Cold Market?

Unless you're a first-time buyer, you've probably got a house to
sell while you're shopping for a new home, so it's not easy to
determine if a strong market is helpful or harmful. As a general rule,
if you are moving up - looking for a new home significantly more
costly than your old one - you may want to act during a weak
market, when the savings on an expensive, new property will more
than outweigh the losses on the older one. Conversely, empty
nesters looking to switch to a smaller home may want to plan their
move during a hot market, when they can maximize gains on the
sale of a larger home.

When is the Best Time of Year to Sell?

In most markets there are two primary selling seasons - spring and
fall. Spring is the strongest, since many buyers want to move in
before the next school year begins. Summer and winter are
generally poor selling periods. Avoid marketing your home at these
times if you can. Of course, some areas have their own specific
seasonality. If you are selling a home in a seaside vacation spot,
for example, summer is an excellent time to be on the market.

Understand Recent Area Sales

Don't listen to anecdotes about bidding wars and homes getting
snapped up in one day. There is no substitute for accurate
information. Check out the actual sales prices of area homes, and
try to get a feel for what is really happening in the marketplace.