Now is the Time to Buy… 10 Reasons Why! Part 4
By: Charles Warnock , eNeighborhood.com Marketing
4. Finding value is easier in a tough market
Rich Dad Poor Dad author Robert Kiyosaki uses the example of a sale at the local supermarket to illustrate a common investor mistake – focusing on price movements instead of value. He notes that if a supermarket held a “25% off everything in the store” sale, the store would be packed.
But when prices plunge in the stock market or real estate market, many investors hear the bad news and head for the sidelines until prices begin climbing again. In any market, it’s important to consider value along with price. Supply and demand dictates that real estate values are easier to find in slow periods and become harder to find when markets heat up.
So what’s lasting value? Here’s a list of homebuyers’ most sought-after features, according to the NAR:
1. Central Air Conditioning
2. Garage with two or more spaces
3. Walk-in closet in master bedroom
4. Backyard/play area
5. Cable/Satellite TV-ready
6. High Speed Internet
7. Separate Shower in master bath
10. Home newer than 10 years old
If you have looked in the past and not found these features in your price range, it may be time to check again, while properties are “on sale.” Be sure to consider features that will make homes more valuable in the future, such as energy-efficient construction and appliances and shorter commuting times. Features like water or mountain views, good schools, recreation opportunities and unique architecture never go out of style. Source: NAR 2007 Profile of Buyer’s Home Feature Preferences
3. There is more than one yardstick
How slow is the real estate market? It depends whom you ask, and how they measure. Real Trends, one of the industry’s most respected research organizations, recently reported year-over-year changes range from -4.6 percent by the Office of Federal Housing Enterprise Oversight (OFHEO) to -20.01 percent by a group called Integrated Asset Service
Be sure to consider features that will make homes more valuable in the future, such as energy-efficient construction and appliances and shorter commuting times.
The wide range indexes and opinions doesn’t necessarily mean one index is more accurate than another. It means that indexes use different methods of gathering data, and often different sample populations. For many real estate professionals, it’s important to know the details of housing price trends. For home buyers, it’s more important to put the broad numbers in perspective. They may provide a good indicator of market trends, but they will never be as important as what’s happening in your neighborhood and your personal situation.