Price Is Just One Factor When Buying Real Estate
Consider our 21 points before you buy
Below is list of questions to consider when assessing current and potential future value of a property and the desirability of the neighborhood.
There are many factors beyond price, price history, average price per sq. ft. and the homes specs that are crucial in helping determine your offer price, list price, or the property’s viability as an option for your family. Whether you are in the market to buy or sell the 21 bullet points listed below outline what to consider before making your move.
Is the neighborhood trending up or down? Do you see other renovations, new construction coming?
Is the neighborhood looking tired and worn out? If so could it be re-invigorated in the future, Miami-south-beach-style?
What are the crime statistics? Heading up or down? Stable?
Quality of schools.
Access to public transportation.
How long does it take to get to daily conveniences? Even weekend house buyers are asking for walkability to a local coffee shop and are buying in towns rather than being far removed.
What does the vegetation look like? A beautiful tree-lined street will have eternal charms. Any plans to plant/landscape the public areas of the area?
Is the neighborhood designated a historical landmark? Restricting what can be built may have longterm value.
What are the zoning restrictions? Restricting height and size could limit future supply.
Are there esthetic restrictions? Think Nantucket; they have a very uniform architectural code that keeps a uniformity to the entire island, values keep soaring.
Neighborhood quality of life: what is it like to live in this area? What is the quality and quantity of retail?
Food. Good food – whether a superb food market or restaurant – can change an entire neighborhood.
Demographic studies: who is moving in and who is moving out and why?
What cultural attractions are there in the area? Sometimes a theatre or movie theatre can transform a neighborhood. Multiple cultural attractions are even better.
What is the quality of the infrastructure? The roads, bridges, sidewalks, lighting, access points
Transportation: is it easy and straightforward? Is it safe? Are there public transportation options? Is there sufficient parking?
Government: how restrictive is government and how difficult do they make it to build, renovate, do business?
Taxation: what sort of local taxes exist? What is the local debt? How prudent is the government on spending? What is the money spent on? If taxes are high, what exactly do they deliver?
Economics: What is the strength of the local economy? How diversified is the economy? Is it reliant on one big employer (risky)? What are the unemployment numbers and how consistent are they?
How much open land exists? Are there many opportunities to build more?
How attractive is the area to younger people? Is it appealing to all generations or just one?
These are just some of the considerations to ponder and explore. The longer your checklist covers the above, the more robust the value of the real estate generally.
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just an intelligent conversation. Hope to hear from you soon.