If you’re a long time renter, and starting to examine the purchasing process, here are some helpful tips to ensure that you’re making a smart decision to purchase. It can be surprising how much work and effort goes into buying a home, and a smart decision would be to get qualified by a lender to determine which price range would be the most affordable, and to interview with a few Real Estate agents to find the perfect person to represent you in your first transaction. Once you’ve been qualified, and have a price range to aim towards, you’ll be able to check out different neighborhoods. It is also important to research your agent; have they sold multiple properties in the last year? Make sure your paired with someone knowledgeable in the area you’re looking to live, and someone with an up to date license.
Once you have narrowed down the price range, and right neighborhood, be certain that you’re looking for a property that you can live in for a minimum of five years. If there is nothing in your price range in the neighborhood you desire, it might be worth staying a renter and saving additional funds, so you can afford to buy in the area you want to live. An owner typically does not earn equity on a home until after 5 years, which is generally the breaking even point, according to Zillow statistics. Buying Real Estate can be expensive, risky, and time consuming, so make sure you do your homework, take your time shopping around, and take time to research the real estate market where you’re considering buying.
The nation’s real estate market is slowly recovering after the long haul, and 2013 is said to be the year for a turn around. According to the Seattle Pi, San Francisco is predictably the top city, but shortly behind with a secondary market is our very own Seattle. Investors are leaning towards Real Estate because despite the slow recovery they are still able to profit.
The Emerging Trends in Real Estate Report by the Urban Land Institute indicated that San Francisco landed the # 1 spot due to tech, trade, and quality of life in the city along with neighbor San Jose which ranked 3rd on the list. Seattle, along with Houston, was highly ranked because of the growing number of “echo boomers” or those 25-34 year olds. This group has increased by 20% in Seattle, and reflect the future homeowners in the area. Right now the statistics show that this group is currently willing to rent smaller apartments for higher prices as long as they have enticing amenities and close proximity to public transportation. When will the echo boomers make the transition to buyers? Predictably 2013. For more information on the Emerging Trends report, visit the Urban Land Institute.