Seasonal Fluctuations in Real Estate

What should I ask my real estate agent before selling?

Hiring a real estate agent isn't as easy as it seems. You want someone who is personable, knowledgeable and effective, but how do you go about finding that perfect balance?

Meeting an agent is easy enough - simply search the homesandland.com real estate site for listings in your zip code and then contact agents that demonstrate the quality listings comparable to your own. Take time to email and call on a potential listing to test their response time and service. After viewing their listings you will have a good idea of how well they describe the properties, show the photo's, and market it. Keep notes and narrow your selection down to your top choices.

Next, it is time to interview the agent. This is where you will test their knowledge and expertise. It is also where experience can really pay off. An experienced agent will have vast insight into local real estate market statistics that can help you obtain top dollar for your property. Don't be afraid to ask - professionals like to show their stuff. If they don't have the data at their fingertips, they know how to obtain it.

1. What is the average listing prices for houses of this age, size and location?

2. What is the average selling price for homes of this age, size and location?

3. How long has the average home been listed before selling?

4. How many homes are currently on the market?

5. How many homes were on the market one year ago? Two years ago? Three years ago?

6. What was the average selling price for homes of this age, size and location last month? Three and six months ago? A year ago? (Remember, there are seasonal fluctuations to consider).

7. What is the percentage of owner occupied versus rental homes in the area?

8. Are there any large neighborhoods or communities in development?

9. What is the average household income in the area? Age? Is the area growing, stagnating or decreasing?

10. What has been the rate of appreciation or depreciation in the local market for the past one to five years?

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What Real Estate Market Data Should I Know Before Buying?

Buying a home is one of the biggest investments you will ever make, but even more importantly, it is one of the most important decisions you will make for your entire family. School, work, friends and community are all dependent upon your choice of where to buy or build. Unfortunately, most people spend a great deal more time falling in love with the house than they do objectively evaluating the real estate market data. Sadly, that can result in costly mistakes.

Take time to investigate the following real estate market data points for your location in order to make the most informed decision possible when buying a home:

1. Is the population growing, stagnating or declining? Whenever possible, search for areas that are growing, but balance it with the total cost of ownership.

2. Is the local economy healthy? Towns that depend upon one or two major employers are subject to experience drastic declines in the real estate market should an employer close up and leave town. Even if you don't work with that employer, the resulting sales due to relocations or foreclosures may negatively impact your own real estate portfolio.

3. What is the ratio of rentals versus owner occupied? Areas with very high rental rates can translate into higher insurance rates, lower resale values and potential difficulty in obtaining financing at later dates. This is a highly variable measure and should be discussed with a real estate professional with in-depth knowledge specific to the market and location in question. Visit homesandland.com to use the free agent search.

4. What is the foreclosure rate in the local community? The sub-prime market problems have increased the visibility of the problem, but it is important to realize that it is not equally distributed. Some neighborhoods are indeed experiencing a great deal of difficulty due to foreclosures whereas other areas are barely impacted. Obviously caution is advised to avoid areas that are negative impacted, but also don't let the perceived risk frighten you away from what may be a golden opportunity. Instead, investigate the actual numbers.

5. What type of economic development, infrastructure and other plans are currently underway in the area? It is possible to ascertain a great deal about the future viability of a real estate investment by understanding the growth patterns taking place. For instance, some of the greatest appreciation in the nation over the past half dozen years took place in areas barely recognized by most people: places like Ocala, Florida were all but unknown to most people. However, with lower than average home prices and one of the largest growth rates in the nation, the economic development and infrastructure indicated the potential for massive expansion. The result was double digit real estate appreciation for five years in a row with a strong continuation even as the rest of the nation declines or stagnates.

Take time to research the real estate market data in your area before making your final purchase in order to assure your financial health and lifestyle are the best possible.

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How can I sell my home to foreign buyers?

The real estate market forecast remains bright for international buyers translating into potential profits for sellers who understand the implications of a falling dollar and favorable exchange rate. However, there are unique challenges faced when attracting international or global clients. Use these quick tips to get started:

1. Select a real estate agent who has worked with international buyers. The ability to speak a foreign language is a nice touch, but it is absolutely essential the professional understand the nuances of dealing with foreign transactions. Seek out experienced agents with a proven track record of success.

2. Stage your home to appeal to an international audience. Hire a professional staging company or interior decorator with cross cultural competency and then follow their advice. Consider investing in colors, patterns and amenities that would appeal to foreign buyers. For instance, color has very different associations from one culture to another. In the USA, white is a sign of purity or cleanliness, but it represents death among many Asiatic cultures. Likewise, a bidet may be a common expectation for many foreign buyers. Obtain professional advice in order to make your home as appealing as possible.

3. Make it easy on the buyer. Again, here is where a competent and experienced real estate agent makes all the difference. Don't assume the buyer understands the financial, legal and other obligations related to buying a home in a foreign country. The favorable exchange rate might provide the incentive to buy a second home, but negotiating the contracts and finances could prove challenging. Make it easy on your buyers to have a single point of contact who will take the required time to guide them through the process.

4. Understand how your home will be listed and marketed to a global audience. Websites like homesandland.com allow people to search and view listings throughout the U.S. and Canada which is a great starting place. Speak to your real estate agent about how they will build upon the foundation of Internet listings.

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What trends are important for real estate market projections?

Whether you are an investor or would simply like to maximize your personal bottom line by buying a home with the greatest possible return, understanding a few real estate market projections for your area could make a big difference in your approach to real estate.

1. All real estate is local. Whatever you may hear on the media is important to consider, but there are exceptions to every rule. Get to know what is taking place in your local community: Is there a new mall being built up the road? Now might be the perfect time to buy while it is still affordable. What about the construction of a major road or a new mega-employer coming to town? Even in the worst real estate markets there is money to be made by those who have their pulse on the local market.

2. Understand demographic trends. For example, the Baby Boomer's are just beginning to retire so understanding where they are going, what they are searching for can provide a great deal of insight into emerging markets. States like Florida are expanding faster than the infrastructure can keep up - a ripe opportunity for those able to capitalize upon the trend.

3. Vacation homes. Tourism, a distributed lifestyle and the growing trend toward rest and relaxation assure a constant demand for low maintenance homes in places that allow people to unwind and get away from it all.

4. Falling dollar. The falling dollar impacts real estate in two major ways. First, it makes American homes and real estate even more desirable to foreign buyers or investors because it is affordable. Urban areas as well as vacation or luxury homes can dramatically benefit from the exchange rate. Secondly, a falling dollar is associated with price inflation for assets and commodities. Housing, building supplies and even the cost of transportation will increase in response to price inflation causing the overall cost of a home to increase.

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How does season impact real estate?

Few people consider the impact of seasonal real estate trends when it comes to buying or selling a home however, the real estate market is actually subject to fairly dramatic shifts depending upon the season. Wise real estate buyers and sellers will take advantage of these trends.

1. Speak to a local real estate agent about the best time to buy or sell a home. Remember, all real estate is local and conditions vary. For instance, winter tends to be a less desirable time for many people to move or relocate due to weather conditions and children in school. On the other hand, the influx of snow-birds to states like Florida or Arizona might make it the perfect time to list a home near a retirement community.

2. Understand real estate market fluctuations. The media will often report month over month sales or listing prices, but home sales rise and fall for a variety of reasons including the season, length of the month and even holidays. It is advisable to compare year over year rates as well as month to month rates when evaluating real estate market performance.

3. When buying a home try to shop during the "off season" if possible. Likewise, when selling a home, attempt to schedule the listing during the time of year that corresponds to your target market -- for instance, summer when school is out to attract a first-time home buyer.

4. Plan ahead. When selling your home, take photographs during spring and summer when the foliage and yard looks its best. Avoid overcast, barren winter days whenever possible.

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Should I buy now?

Turn on the news and chances are you will hear some dire real estate market predictions, but how concerned should you really be? It depends.

If you own a sub-prime mortgage that is due to reset and you cannot afford the new payments, then it might be a good time to shop for a fixed rate loan while interest rates remain low. If you were an investor hoping for a quick flip, then it is probably a good idea to find out how long homes are staying on the market before selling in your local area. Perhaps it is time to lower the asking price or rent the house while waiting it out.

So, what about first time home-buyers or others who might be interested in purchasing a new home? The real estate market predictions for you may not be as bleak as the media makes them sound. Take this quick quiz to see if buying a home is still a good decision for you:

1. I intend to remain in the home for at least three to five years.

2. I qualify for a fixed rate mortgage.

3. I live in an area where sales of existing homes has slowed. Remember, many investors and others bought with the intent to sell and don't really want to own the home. As inventory increases, it becomes a "buyer's market" meaning you are in a better position to make a reduced price offer.

So, is it wise to ignore real estate market predictions? Sometimes yes. Remember, real estate is local and your personal situation dictates the individual strategy that is right for you at any given time. A buyer's market combined with low fixed interest mortgage rates might be a great time for you to buy your own home.

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Where can I Find Real Estate Market Statistics

Finding real estate market statistics sounds like a good idea, but where do you begin? It's a fair question and fortunately, finding reliable real estate market statistics and housing market predictions is easier than ever if you know where to look.

1. Contact your local agent or find an experienced agent in your new area by visiting homesandland.com to use their search tool for any zip code in the nation.

2. Request demographic data from your local Chamber of Commerce and Better Business Bureau.

3. Visit www.census.gov for a variety of demographic and business information. You can search by zip code, occupation and industry, or an entire variety of other criteria. It's free but will take a bit of time to learn how to use in order to find the valuable data.

4. Sign up for one of HUD's (Housing and Urban Development) newsletters and market data reports at www.hud.gov. Most are free and provide superb insight into national and state trends and forecasting reports.

5. Keep your pulse on new home construction by visiting the National Association of Home Builders.

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