Five Things to Consider When Buying in Today’s Real Estate Market

The real estate market has taken a 180 degree turn and become very much in favor of buyers. This is a great thing for people looking to own, especially first-time homeowners. However, when touring prospective purchases, even if you are getting a great deal on the property, there are a few things to keep in mind.

1) Time. Sure you are getting a great value in today's market. But conditions in the real estate market aren't likely to change. Which means, to see any profit on your unit, you are going to have to live there for a few years. Buy with the idea that you are going to live in your home for a minimum of 3 years, and hopefully at least 5 years.

2) Location. As the phrase goes, "location, location, location." But in markets where appreciation is slim, you may be best off buying in an ‘up-and-coming' neighborhood. Sure it may not have everything to offer, but more change will occur in these area over the time you own there, and that will translate into more money for you when you sell. Typically, appreciation in developed areas during slow times of growth keeps up with inflation. Whereas growing neighborhoods can net you three times that rate or more in appreciation.

3) Neighbors. You may not care who your neighbor is, but the person you sell your home to might. Do you have a lot of kids in the building? Are pets allowed? These can be both pros and cons, but if you are looking at purchasing a one-bedroom unit, you are better off buying in a building of other one-bedroom unit, because your next buyer is not likely to have kids, and may likely not want children as neighbors.

4) Style. Some buyers love Victorians, some love modern, sleek lines. Whatever your style, be sure that it isn't a fad. Super modern pads, or extremely vintage homes have a narrow appeal. Also consider interior finishes. For example, bamboo wood floors are very ‘in' right now. Finishes like this attract attention, and therefore dollars. However, reflect on whether you think updated finishes fit the décor of the rest of the home. Otherwise, by the time you are ready to sell, this trend could be ‘out'.

5) The ‘Less-one' life-style factor. You may hate barbequing. You may not care about having laundry in-unit. You may not take public transportation. But when it comes time for you to sell, your buyer might. Things like outdoor space (decks, balconies, etc.), laundry facilities, and parking/public transportation are major lifestyle factors in many buyers' decisions. Make sure the unit you buy meets not only your current needs, but the needs of your future buyer. For example, if a parking space is not included, mass transit should be very convenient. If there is no place to do laundry, there should be a parking space. Your unit should only be lacking one major thing. Because inevitably, there will be a unit your potential buyers see that has more of what their looking for as far as these features. And no amount of interior updates will woo them.

Hopefully, these five tips will help you make an educated decision in your real estate purchase, so that you are not only finding a place to live but making a solid investment as well.