4 Factors Which Impact Real Estate’s Future

Since no one has a crystal ball, there will always be, a significant degree of uncertainty, when it comes to trying to predict, and forecast, the future, and trends, when it comes to the housing market, etc! Although, past trends, are significant, and important, to understand, we must, also recognize, we live in an evolving world, and, everything, from how, houses are marketed (especially, the digital/ Internet considerations), to the extended, nearly, historically low, mortgage interest rates, differ, from what has been witnessed, and experienced, in the past. With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 4 factors, which might probably, impact real estate’s future.

1. Supply and demand: One item, which has always been relevant, and still is, is the idea and concept, of Supply and Demand. When there is more supply (available houses on market, than qualified buyers), than demand (buyers, proactively, seeking a home, to purchase), home prices are stressed, and, often, fall! On the other hand, when the converse, exists, prices, generally, move upward. Housing prices, and pricing, are, generally, fluid, and, either, Buyers Markets, or Sellers Markets, often, come and go, quickly, and regularly!

2. Available funds: There are times, when lending institutions, follow, more strict guidelines, and, others, when money is looser! This creates, times, when they require higher, or lower, credit requirements, in order to loan, and finance, a house. In addition, depending on overall conditions, there may be, either, more, or fewer, qualified buyers. When money is more – readily available, lenders may require lower downpayments, which, means individuals, often, apply for a greater amount of the loan principal.

3. Job security/ optimism: The more, secure, potential buyers, are, and feel, and whether, they believe, there will be a prolonged, positive job/ employment market, often, determines, how many people, consider themselves, potential buyers. When there are fewer buyers, this creates, lower house prices, etc.

4. Local, regional, and national economic conditions: Economic conditions, often, dictate, and determine, the behavior and performance of the housing market! Although, world – wide, and national, economic conditions, are significant, regional and local factors, strengths, weaknesses, trends, etc, are often, even more relevant! When consumer confidence is high, and potential buyers, believe, positive things, will continue, the real estate market benefits!

Both, professional real estate agents, as well as homeowners, and potential buyers, benefit, when they better understand, as many relevant factors, as possible. Smart buyers and sellers, hire, someone, who will help direct them, to understand, the best courses of action, and opportunities.

4 Factors Which Impact Real Estate Prices

Many factors affect the price, a specific house, might garner, if offered, for sale, on the real estate market. While there are both, emotional, as well as logical considerations, involved, four specific factors, generally, are the key components, which make the biggest differences, in what price, a specific home, might get, and offers, which will be presented. While there are always, competitive factors, especially how a specific property, compares, to others, for sale, in the local area, after more than a decade, as a Real Estate Licensed Salesperson, in the State of New York. I have come to believe, 4 specific factors, are most significant and relevant. With that in mind, this article will attempt to briefly consider, review, and discuss, these considerations, and why it’s important to proceed, with objectivity, and a realistic approach.

1. Overall economy, and consumer confidence: Obviously, the stronger the overall economy, and the more consumer confidence, as well belief, in a strong, sustainable employment/ job market, the more, people, might be ready, willing, and able, to pay, for a new home, of their own! Perceptions are often, far more essential, and relevant, than any other single factor/ factors!

2. Interest Rates and Real estate taxes: Overall interest rates, are the key, to mortgage rates, and obviously, the lower these rates, the lower, the monthly costs, for the homeowner. Even a somewhat minor, change in the rate, often, makes a significant difference, in the monthly expenses. In this mindset, one must consider, real estate taxes, also, because, they factor into, the overall costs, of home ownership, maintenance, etc.

3. Supply and demand: Real estate markets might be considered, Buyers Markets, Sellers Markets, and/ or neutral ones! When there are more buyers than houses on the market/ sellers, it’s a Sellers Market. When there are more sellers than those qualified buyers, looking, it becomes a Buyers Market, and when it’s somewhere, more balanced/ in – between, it’s a neutral one. Obviously, in most cases, the highest prices, occur in Sellers Markets, based on the economic concept of Supply and Demand!

4. Local market: Much of real estate, is local, in nature! Is your local area, in – demand? What are the strengths, and weaknesses? How does your area, neighborhood, location, etc, compare to other areas. Factors to consider include: safety; schools; convenience to transportation, shopping, entertainment; real estate taxes; etc.

The better one understands the actual value, as opposed to what, he wishes for, the more prepared, he will be, for the home buying, process. Will you commit to the tasks, discipline, etc?

5 Factors Why Real Estate CommissionsVary

Most people recognize, while the commission charged, by real estate agents, is often, quite similar, within local communities, they vary. Not only is it the law, but the most efficient, effective way, to conduct business. Although homeowners should not focus, all their attention, on this rate, it is, of course, one, which should, and is considered, quite often. With that in mind, this article will attempt to briefly examine, review, consider, and discuss, what this means and represents, and 5 factors, regarding, why real estate commissions vary.

1. It’s the law: Since real estate agents are Independent Contractors, they must be free, to determine, the best commission, and their reasons, for asking for a specific rate. This is not only, the law, but, rather, also, the reasonable, best possible approach!

2. All representation is not always equal: Sometimes, we should look at these fees, as, You get what you pay for! Different agents possess different abilities, attitudes, willingness to pay attention, services, and perspectives, which might make a particular one, more valuable to a specific homeowner! During the interview and presentation process, a potential client, should carefully evaluate which representative, might best serve, their specific needs. How well does the individual, defend his reasons, exhibit superior value, based on negotiating prowess, and expertise, etc? If someone is unable to justify his own value, how will he be able to perform the finest negotiations, on your behalf?

3. Time/ effort: Some agents will exhibit more effort, and dedicate more time, than others. In addition, some properties require more effort, than others, in terms of marketing, staging, and making the best, possible impact, so the homeowner has the best chance, to get the best possible price, in the shortest period of time, with a minimum of hassle and stress!

4. Agent’s value: When you interview, to hire you representation, it’s important and essential, to determine the value, of each individual, not merely in terms of services, but, rather the relevant benefits, of their efforts. If someone provides superior, more valuable service, they should be entitled, perhaps, to higher compensation.

5. Service: Will the person you hire, be there, for you, consistently, addressing your concerns, answering questions, explaining their reasoning, and how, teamwork, might provide the best results, as well as be the resource, to help you find the finest professionals, for you, in related areas, such as mortgage banking/ brokerage, home inspection, legal representation, stagers, etc? Will he be there, for you, from the onset, through the closing?

All agents are not equal, so why should all commissions paid, be? Find the individual, who will best serve your specific needs (actual, anticipated, and potential)!