|It pays to check out a neighborhood|
Julie Garton-Good, GRI, DREI
home we're interested in is just one of many for sale in the neighborhood. How
could we check out if this neighborhood is worth investing in?
though you may think of the worst when you see many for sale signs, it could
indicate that the location is desirable. The area may have had good appreciation
and increase in value, enticing the owners to sell. It also may be an area where
schools are strong, amenities great, but where owners are more of the age and
demographics of those likely to be transferred. Relocation is more prevalent
where owners are upwardly mobile.
It pays to learn as much as you can about a neighborhood,
however, Ask real estate agents or appraisers to help you gather information
regarding the average selling time of properties on the market and any factors
not related directly to the property, such as area rezoning, sewer or street
assessments, which could spur homeowners to sell.
You should also determine how list prices compare to final
sales prices. A large number of sellers settling for far less than list price
could indicate a hidden motivation and urgency not yet apparent. For example,
increasing crime, pending rezoning, or restructured school boundaries might have
an adverse affect on the stability of a neighborhood.
When you apply for a mortgage, an appraisal will be
required. You could certainly make any offer contingent on receiving and
reviewing a satisfactory appraisal. Besides stating the appraiser's estimate of
value, there will also be an overview of what's going on in neighboring areas
that could impact the home.