Monday, August 10, 2009

Where to Buy? Helpful Hints...

In a recent article published in the August edition of Money magazine, the author highlights the common elements that certain markets of stable value have. Everyone wants to purchase a home in a location that is going to maintain it's value and most of us (I'm guessing YOU) want to buy a home in an area that appreciates over time, since the purchase is usually one of the largest investments we will ever make.

Most buyers I work with are very concerned with proximity to their work, the spatial qualifications of the home (# of bedrooms and baths, square footage), the condition and what the area looks like maintenance-wise. But as the article suggests there are more things that you and your "seasoned" Realtor should be looking at. Some of the items in Money magazine are:

Proximity-High gas prices, long commutes...no one wants to drive further than they have to.

Great Schools-Home prices in areas with great school systems tend to be more stable and hold up best during downturns according to the article. You should consider this item even if you don't have children because whoever buys your home next, may.

Strict Limits on New Construction-Studies show and the article points out, that towns that have stricter zoning regulations and limited supply hold their value better. Also, towns that have limited growth areas, such as towns situated between metro areas or bordering natural barriers such as mountains or lakes.

Plenty of Commerce-Money says that towns with stores, banks, theatres and white collar employers tend to hold up best.

Lots of Flower Boxes-Carefully manicured lawns, entrances, parks and streets are responsible for the values of the surrounding neighborhoods and properties. Checking out the number of foreclosures in an area as compared to other areas of consideration can also play into the sustainability of pricing.

Very interesting article, some of these items we have discussed here before on the blog...but always good to keep you up to date on these things as you and your friends and family are out there looking for real estate investments. To view the article in it's entirety you can go online or purchase the August 09 copy of Money magazine.

Have a great week!

Brooke

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