by localmarket | Jan 19, 2024 | Business Tips
Unleashing the Power of 10 Pro Strategies for Efficient Home Sales
Closing a home sale quickly and efficiently is a goal that many real estate agents strive to achieve. The faster a home sale is completed, the quicker the agent can move on to other clients and transactions. Additionally, closing a sale efficiently can save time and resources for both the agent and the seller. In this article, we will discuss effective strategies and tips for closing a home sale quickly and efficiently.
Establish a Strong Professional Network
One of the keys to closing a home sale quickly and efficiently is having a strong professional network. This network should include reliable and trustworthy professionals such as lenders, inspectors, appraisers, and attorneys. Having a strong network ensures that all necessary parties are in place and can work together seamlessly to complete the transaction in a timely manner.
Streamline the Process
To close a home sale quickly and efficiently, it is important to streamline the entire process. This can be achieved by utilizing technology and digital tools to simplify tasks such as document signing, virtual tours, and online marketing. By embracing technology, real estate agents can save time and speed up the home selling process.
Price the Property Competitively
Pricing the property competitively is essential for closing a home sale quickly. Overpricing a property can deter potential buyers and lead to a longer time on the market. By pricing the property competitively, the agent can attract more buyers and increase the chances of receiving multiple offers, which can lead to a quicker sale.
Market the Property Effectively
A comprehensive and targeted marketing plan is crucial for closing a home sale quickly and efficiently. Utilize various marketing channels such as online listings, social media, real estate websites, and email marketing to reach a broad range of potential buyers. Professional photography, virtual tours, and captivating descriptions can also help generate interest and attract more potential buyers.
Communicate Clearly and Consistently
Clear and consistent communication is vital throughout the home selling process. Regularly update the seller on the status of the sale, provide feedback from potential buyers, and promptly address any concerns or questions. By maintaining open lines of communication, the agent can build trust and confidence with the seller, which can contribute to a smoother and quicker transaction.
Pre-qualify Buyers
To ensure a quick and efficient sale, it is important to pre-qualify potential buyers. This involves evaluating their financial capabilities, including their creditworthiness and ability to secure financing. By pre-qualifying buyers, the agent can focus their efforts on serious and qualified individuals, saving time and effort in the negotiation and closing process.
Prepare Thoroughly for Showings and Inspections
Thoroughly preparing for showings and inspections can help expedite the sale process. Ensure that the property is clean, well-maintained, and staged appropriately to make a positive impression on potential buyers. Address any necessary repairs or maintenance issues prior to listing the property to avoid delays during the inspection phase.
Collaborate with the Buyer’s Agent
Collaborating with the buyer’s agent is essential for a smooth and efficient closing process. Establish a professional and cooperative relationship with the buyer’s agent to facilitate effective communication and negotiation. By working together, both agents can ensure that all necessary documents and requirements are met promptly, expediting the closing process.
Be Proactive and Anticipate Potential Issues
To close a home sale quickly and efficiently, real estate agents should be proactive and anticipate potential issues that may arise. By identifying and addressing potential obstacles early on, agents can prevent delays and keep the transaction on track. This may involve conducting thorough due diligence, providing accurate information, and promptly resolving any legal or financial concerns.
Utilize a Transaction Coordinator
Consider utilizing a transaction coordinator to streamline the closing process. A transaction coordinator can handle administrative tasks, gather necessary documents, coordinate with all parties involved, and ensure that deadlines are met. By delegating these responsibilities to a transaction coordinator, agents can focus on other aspects of the sale, leading to a quicker and more efficient closing.
Closing a home sale quickly and efficiently requires careful planning, effective communication, and proactive measures. By establishing a strong professional network, streamlining the process, pricing the property competitively, and marketing effectively, agents can increase their chances of closing a sale in a timely manner. Additionally, clear communication, thorough preparation, and collaboration with the buyer’s agent can contribute to a smoother and more efficient closing process. By implementing these strategies and tips, real estate agents can successfully close home sales quickly and efficiently.
by localmarket | Jan 17, 2024 | Business Tips
Unlocking the hidden gem with a real estate expert.
Selling a house can be a complicated and emotional process, as it involves various uncertainties and challenges. As an experienced real estate professional, I have discovered a valuable strategy that can enhance your selling experience: pricing your property above market value. In this blog post, I will reveal this secret that can help your home stand out and attract a higher price.
The Power of Presentation
When selling your property, it’s important to present it well. A nicely maintained and visually appealing home will impress potential buyers right away. Consider hiring professionals for home staging to highlight every room’s potential. Use neutral colors, remove clutter, and arrange furniture strategically to create a spacious and inviting atmosphere.
Highlight Unique Features
Every house has unique features that make it stand out. These can include a cozy reading nook, a well-designed backyard, or special architectural details. Highlighting these aspects in your marketing materials, online listings, and showings can help sell your house for more than its market value. Buyers are often willing to pay extra for memorable and distinctive elements in a property.
Strategic Timing
Timing is an important factor to consider in real estate. It is advisable to list your property during peak selling seasons or when there is high demand in the local market. By strategically timing your listing, you can create a sense of urgency among potential buyers, motivating them to act quickly and possibly offer a higher bid to secure the market.
Utilize Professional Photography
In today’s digital age, high-quality photographs are crucial to attracting potential buyers. Hiring a professional photographer can capture your property’s best angles and showcase its unique features effectively. These visually appealing images can create a lasting impression and generate more interest in your listing.
Effective Marketing Strategies
To sell your house above market value, it is essential to implement effective marketing strategies. Utilize various online platforms such as real estate websites, social media, and email marketing to reach a wider audience. Create compelling descriptions and use high-quality images to grab potential buyers’ attention. Consider hosting virtual tours or open houses to make it convenient for interested parties to view your property.
Price Above Market Value
Pricing your house above market value can be a risky move, but if done strategically, it can lead to a higher selling price. This strategy works best in a seller’s market where demand is high and inventory is low. Pricing your property above market value creates a perception of exclusivity and scarcity, making potential buyers more willing to pay a premium.
However, it is important to note that pricing too far above market value can deter buyers and result in a longer time on the market.
Invest in Professional Photography
In today’s digital age, online first impressions are crucial. Professional photographs have the power to greatly enhance your property’s appeal and attract more buyers. It is important to hire a skilled photographer who can capture the essence of your home, highlighting its best features from various angles. By using engaging visuals, you can generate greater interest and potentially spark competitive bidding.
Price your products appropriately while also considering long-term strategies
Setting the right price is important, and sometimes pricing your property slightly above market value can be a strategic decision. Buyers might view your home as more valuable because of the higher listing price, especially if it includes additional benefits like recent renovations, updated appliances, or premium amenities. However, it’s necessary to have patience and be willing to wait for the right buyer who acknowledges the value of your property.
Build a Compelling Narrative
Crafting a compelling story about your home can enhance potential buyers’ interest and emotional connection. Emphasize the positive experiences in the house, the charm of the neighborhood, and any improvements or renovations. Establishing a personal connection can increase the appeal of your property and potentially impact a buyer’s willingness to pay a higher price.
Selling your house above market value requires a strategic process that involves highlighting your property’s unique features and presenting it in the best possible way. Factors such as presentation, timing, photography, pricing strategy, and storytelling can help unlock your home’s potential and attract buyers willing to pay a premium. With these techniques, you can increase your chances of achieving a successful and lucrative home sale.
by localmarket | Jan 16, 2024 | Business Tips
An examination of the ever-changing real estate landscape in 2024.
Welcome to the future of home buying. The traditional concept of finding the perfect home has been influenced by technological advancements, changing lifestyles, and shifting priorities. In 2024, the realm of real estate offers a variety of options and considerations for home buyers. In this blog post, we explore what home buyers are looking for in 2024, highlighting the trends and desires that shape their decisions.
There is a growing excitement around the home buying process. This is due in part because of advancements in technology and changing societal values. We are witnessing the evolution of the real estate industry in ways we have never seen before. We invite you on a journey where we explore the mindset of today’s home buyers and examine the factors that influence their choices. We will also redefine what it means for a homebuyer’s dream home in the future. In a world where the idea of a home is constantly changing, let’s uncover the key elements that will shape the real estate market in 2024.
The Digital Shift in Home Searching: Exploring Tomorrow’s Virtual Realty
The digital revolution has changed how people search for homes. Virtual reality (VR) house tours are becoming popular in 2024. They allow prospective buyers to explore properties from their own space. VR tours provide a realistic sense of scale and layout, unlike static images. It’s like stepping inside your dream home.
Smart home integration is becoming more popular as homebuyers look for properties with the latest in smart technology such as automated lighting, security systems, and integrated appliances. These features offer convenience and efficiency, transforming houses into intelligent, responsive hubs that cater to the needs and preferences of their occupants.
As the digital landscape grows, online neighborhood reviews are becoming more influential as a valuable resource for people looking for a home. In addition to the property itself, buyers now consider the community, amenities, and local atmosphere before making a decision. Online platforms allow current residents to share real-time insights, providing a firsthand understanding of the neighborhood’s dynamics and assisting potential buyers in making more informed decisions.
In 2024, the digital shift in home searching is changing the way we find and connect with our future homes. This transition to a more tech-driven experience is shaping the expectations of home buyers and setting new standards for the real estate industry.
Sustainability is emphasized as the focus of building the future through eco-conscious living
In the architectural landscape of 2024, sustainability plays a crucial role in home buying decisions. Homebuyers no longer settle for basic shelter; they desire residences that reflect their values and prioritize eco-friendly design and practices. Tomorrow’s homes embody responsible living by incorporating green principles into all aspects of construction.
The rise of eco-friendly architecture is a noticeable shift. Homes now represent environmental responsibility. Architects are creating residences that blend with their ecological surroundings. This is achieved through features like solar panels and designs that maximize natural light and ventilation. Sustainable building materials are gaining popularity due to their durability and reduced environmental impact.
In addition to residential properties, the emphasis on sustainability is also applied to the concept of sustainable communities. Potential homebuyers are attracted to neighborhoods that prioritize environmentally friendly living, incorporating shared green spaces, cycling lanes, and eco-conscious amenities. The appeal of a sustainable lifestyle is reshaping the concept of community, fostering a sense of collective responsibility for the environment.
The evolving nature of home spaces and their adjustment to contemporary lifestyles
In 2024, the dynamics of home spaces are changing due to societal norms and the nature of work and leisure. Homebuyers now desire a living space that seamlessly accommodates their dynamic lifestyles.
The global rise in remote work has led to a redefinition of home offices. Homebuyers now prioritize dedicated and well-designed spaces that promote productivity and creativity. There has been a significant increase in demand for homes with functional and visually appealing home offices, indicating the recognition that remote work is not a temporary trend, but a long-term reality.
Flex rooms are becoming popular in 2024 as they allow for adaptable spaces. These rooms effortlessly transform to meet different needs, such as a home gym or guest bedroom. Homeowners can customize their living spaces to match their changing requirements. This adaptability reflects the fluidity of modern lifestyles and is more than just a convenience.
The demand for outdoor living spaces has increased as people seek a stronger connection with nature. Homebuyers prioritizing well-designed outdoor areas, such as balconies, terraces, or backyards, as an important part of their living spaces. Outdoor spaces are now seen as essential, providing a place for relaxation, entertainment, and a seamless integration of indoor and outdoor living.
As we study the evolving preferences that shape the homes of tomorrow, it becomes evident that the definition of a dream home goes beyond architectural aesthetics. It includes spaces that align with contemporary living, providing flexibility, functionality, and a harmonious balance between work and leisure.
The Role of Social Media in Decision-Making: Crafting Home Narratives in the Digital Age explores the impact of social media on decision-making processes
Social media has significantly impacted the process of buying a home. It has become a crucial factor in shaping people’s perceptions and influencing their decisions. Real estate has moved beyond traditional marketing channels and has found a vibrant platform on social media. Here, aesthetics, trends, and community insights merge to create a diverse range of home stories.
The Instagrammable home trend is on the rise. Homebuyers are now prioritizing visual appeal over functionality. Social media shareability is a key factor, with stylish interiors and picturesque exteriors becoming highly desirable. The hashtag game now includes #DreamHomeGoals.
The rise of online communities has had a significant impact on decision-making processes, with homebuyers seeking advice and information from experienced individuals. Forums and Facebook groups centered around real estate have become invaluable resources for gathering insights on specific neighborhoods and properties. The collective knowledge shared within these online communities has greatly influenced decision-making processes.
Real estate professionals are embracing the role of influencers in the digital age. By utilizing their online presence, they provide a personalized perspective on the properties they represent. Through various methods, such as virtual tours and honest insights, these influencers serve as a link between traditional listings and the evolving preferences of modern homebuyers.
As we examine the role of social media in decision-making, it becomes clear that the digital world is not just an accessory, but a crucial element in the home buying process. The use of visual storytelling and community engagement on social platforms is changing how we view and select our homes.
Personalized experiences in home buying focus on tailoring dreams to reality
In the past few years, personalized experiences have become a key aspect of the home buying journey. Homebuyers now look for residences and services that cater to their individual tastes, preferences, and lifestyles, rather than settling for one-size-fits-all solutions.
Customization in construction is becoming more popular, with homebuyers in 2024 choosing personalized features that reflect their individual tastes and needs. This includes the ability to customize floor plans, finishes, and smart home technology integration, allowing them to tailor every aspect of their property.
In the financial realm of home buying, mortgage options are being customized to align with the unique financial situations and goals of individual buyers. The focus is on creating personalized solutions that fit the diverse circumstances of each homebuyer, including flexible payment plans, lower interest rates, and specialized programs for first-time buyers.
In the changing landscape of the real estate industry, real estate agents have taken on the role of advisors and allies. Homebuyers now look for agents who have extensive market knowledge and understand their unique preferences. The human element in real estate transactions has become crucial, offering guidance, support, and a customized approach to navigating the complexities of the market.
Transformations of Our Dream Homes
In our examination of the changing world of home buying in 2024, one theme becomes evident: the idea of a dream home is transforming. It is no longer limited to the traditional concept of four walls and a roof. The homes of the future are versatile, responsive, and highly individualized. The search for the ideal residence now involves elements of technology, sustainability, adaptability, and personal preference.
The real estate industry is constantly changing, with advancements like virtual reality tours and a growing focus on sustainability. These changes in home spaces are influenced by our modern lifestyles, highlighting the need for adaptable and multifunctional environments.
The role of social media in decision-making is significant in the digital age. The visual appeal of Instagrammable homes, the influence of online communities, and the emergence of real estate influencers have transformed the way people perceive and choose homes. Social media serves not only as a marketing platform but also as a powerful force that shapes perceptions and influences decisions.
Personalized experiences are now prominent in the home buying process. This includes options to customize the construction of a home, personalized mortgage choices, and the assistance and expertise provided by real estate agents, all with the goal of meeting the individual preferences and needs of the homebuyer.
As we explore the changing landscape of real estate, it is evident that the homes of the future are more than just physical structures. They represent our values, aspirations, and the complexities of our lives. The decisions we make in 2024 will shape the future of housing, creating spaces that go beyond mere shelter to become havens of individuality and communal well-being. Join us as we uncover the unfolding aspects of real estate, where each new discovery reveals what home buyers truly desire in this transformative era.
by localmarket | Jan 15, 2024 | Business Tips
Enhancing Your Home’s Exterior
There are many responsibilities involved in preparing to sell your home. These include interior renovations, plumbing fixes, and appliance upgrades. However, one aspect that often goes unnoticed is curb appeal. Neglecting the exterior appearance of your home can lead to challenges such as a decease in property value and a lack of inviting ambiance.
Improving your home’s exterior is crucial for creating a lasting impression and increasing its curb appeal. This can involve various tasks like landscaping and giving the front door a fresh coat of paint. Making sure the exterior looks inviting and well-maintained is essential, whether you’re selling your property or simply wanting a more welcoming environment. In the upcoming sections, we will discuss the importance of curb appeal and highlight overlooked aspects that can make a significant impact.
The Importance of Curb Appeal
Curb appeal is an important aspect of your home, as it reflects its character and overall value. Here is why it matters.
The first impression your home makes is important, whether you’re expecting guests, enticing potential buyers, or catching the eye of passersby. A well-maintained exterior creates a positive impression and makes people feel welcome and intrigued.
Having a visually appealing exterior can have a significant impact on the value of your property. When selling a house, those with excellent curb appeal tend to attract more potential buyers and typically fetch a higher price.
Investing in your home’s curb appeal has benefits beyond just resale value. A well-maintained exterior creates a welcoming and pleasant environment for you and your family to enjoy spending time outdoors.
Some common tasks to improve the curb appeal of your property
Landscaping is an important aspect of improving curb appeal. Take these ideas into consideration.
- Regular maintenance tasks such as mowing, edging, and fertilizing are essential for keeping your lawn in optimal condition.
- Add flowers and shrubs to your front yard to add a vibrant touch.
- Pruning overgrown trees and bushes can contribute to a tidy appearance.
- To maintain a clean and orderly flower bed, it is recommended to apply fresh mulch and prevent weed growth.
- Repainting the Front Door
The front door of your home is an important aspect of its exterior. Adding a fresh coat of paint can give it a fresh look and create a welcoming atmosphere. Select a color that complements the overall aesthetic of your home while making a statement.
It is recommended to regularly clean the exterior of your house to eliminate dirt, mold, and grime. Pressure washing can be an efficient method to ensure a thorough cleaning of your home’s facade.
One should consider adding outdoor lighting fixtures to illuminate walkways, the front porch, and key architectural features of their home. Properly placed lighting can enhance the overall ambiance, particularly during the evening.
To let natural light shine through, it is recommended to clean both sides of your windows. Additionally, make sure the window frames are in good condition. For added charm, consider adding window boxes with colorful flowers.
Although often overlooked, there are certain aspects that can greatly enhance curb appeal and make a noticeable difference
- Gutter Cleaning and Maintenance
Regularly cleaning and repairing gutters is important to prevent water damage and maintain the appearance of your home. Clogged or damaged gutters can impact the overall appeal of your home.
A mailbox can enhance the appearance of your home’s exterior. Consider upgrading to a mailbox that matches your property’s aesthetic.
Cracked and damaged driveways can detract from the overall appearance. It is recommended to repair any cracks and consider resealing the surface for a refreshed look.
- House numbers and an address plaque are necessary for identification purposes.
Having easily visible house numbers and an address plaque can improve accessibility for visitors and enhance the appearance of your home.
Conclusion
Investing in your home’s curb appeal is important for increasing its value and your enjoyment of it. Along with landscaping and repainting the front door, it is also essential to consider maintaining the gutters, upgrading the mailbox, repairing the driveway, and positioning house numbers strategically. By focusing on these aspects, you can create an inviting and well-maintained exterior that leaves a positive impression on visitors and passersby.
For additional information on enhancing your home’s curb appeal and making well-informed real estate choices, please visit Real Estate Insider.
by localmarket | Jan 13, 2024 | Business Tips
Optimizing Listing Success: Effective Strategies for Improved Outcomes
In real estate, listing your home and hoping for the best isn’t enough. To sell quickly and at a desirable price, you must make your property stand out. Decluttering and depersonalizing your home is an effective strategy. It’s more than just tidying up; it’s creating a blank canvas for potential buyers to imagine their own lives in your space.
The Significance of First Impressions
Before a potential buyer enters a home, they form an impression based on its exterior and immediate surroundings. A cluttered and personalized exterior can discourage buyers before they see the interior. Therefore, it is important to begin the process of decluttering and depersonalizing from the curb.
Start by removing any obstructions in front of your home, such as objects blocking your view. Trim any bushes or trees that are overgrown and remove weeds from your garden. Make sure that your front pathway is clear and welcoming. A tidy and uncluttered exterior creates a positive atmosphere and attracts potential buyers.
The Art of Decluttering
After creating an inviting exterior, the next step is to declutter the interior of your home. Decluttering includes removing unnecessary items, organizing spaces, and creating a spacious and welcoming environment. Here are some tips to assist you in getting started.
- Begin by creating a checklist of the rooms and areas you want to tidy up. Prioritize spaces that tend to accumulate the most clutter, such as the living room, kitchen, and bedrooms.
- When going through each room, it is advised to remove personal items such as family photos, children’s artwork, and personalized décor. This will allow buyers to more easily imagine themselves in the space, which can be difficult if it is filled with personal mementos.
- To create a more spacious and organized look in your kitchen and bathrooms, remove unnecessary items from the countertops and leave only a few tasteful decorative pieces. This will give the impression of a larger workspace.
- To alleviate a crowded feeling in a room caused by an abundance of furniture, it may be beneficial to temporarily store some pieces. Strive for a layout that improves the room’s flow and accentuates its potential.
- When preparing your home for potential buyers, it is important to ensure that closets and cabinets are organized and not overcrowded. Consider donating or storing items that are no longer needed.
- Consider repainting your walls in neutral shades if they are currently painted in bold or unique colors. Neutral tones create a calming background that is appealing to a broader range of buyers.
- Address cluttered corners by focusing on corners and niches that tend to accumulate clutter. Clean them up and create visually appealing vignettes using a few carefully selected decorative items.
Depersonalizing for Broader Appeal
Depersonalization is an important aspect of preparing your home for sale. While personal style and unique touches might have made your home comfortable for you, they can make it more difficult for buyers to envision themselves in the space. Here are some effective ways to depersonalize.
- Remove personal items such as photos, memorabilia, and items with strong affiliations to religion or politics. These can create distractions for potential buyers and hinder their ability to envision themselves in the home.
- To create a neutral atmosphere, consider replacing bold or eccentric furniture and décor with more neutral options. This can help buyers imagine their own furnishings in the space.
- To refresh bedrooms, consider replacing bedding and linens with neutral options. It may also be helpful to remove any decorations that are specific to a certain gender or age, such as children’s posters or themed bedding.
- Consider returning a spare room to a more universal use, such as a guest bedroom or office, if it has been turned into a highly personalized space like a home gym or hobby room.
- When preparing for showings, it is important to address any pet-related items such as litter boxes, feeding dishes, and toys by discreetly storing them.
The effect of home staging
Decluttering and depersonalizing are important aspects of home staging, which is a process that enhances the presentation of a property. It involves organizing furniture and décor to optimize the attractiveness and usefulness of each room.
It may be beneficial to work with a professional home stager who can provide knowledgeable guidance on layout, furniture selection, and décor choices. A properly staged home can have a notable impact on how buyers perceive your property.
The advantages of decluttering and depersonalizing
Putting effort into preparing your home for potential buyers can result in multiple significant benefits when selling your property.
- A decluttered and depersonalized home tends to attract a wider range of potential buyers, which can lead to faster offers.
- When there is a strong connection between buyers and your space, they may be more inclined to make higher offers.
- Decluttering before selling your home offers the benefit of having fewer items to pack and move, resulting in a smoother overall process.
- Creating a clean and neutral environment can help make a positive first impression on potential buyers.
- A well-maintained and tidy home can enhance the perception of being well-cared-for, which may increase the value of your property.
Conclusion
Preparing your home for potential buyers is an important step in securing a sale. These actions help create a welcoming and neutral environment that appeals to a wider range of potential buyers. By dedicating time and effort to this process, you can increase your chances of selling your home efficiently and at a favorable price.
The goal is to make your home a blank canvas for buyers to envision their own lives. Decluttering and depersonalizing is crucial for a successful sale. Whether you do it yourself or hire professionals, roll up your sleeves and start decluttering. Get ready to welcome new homeowners to your cherished space and good luck!
by localmarket | Apr 13, 2022 | Business Tips
In the Kelowna Real Estate market several factors affect sales, and one of them is supply and demand. As the population grows through emigration demand for houses increases, and in Canada, and parts of the USA many young people struggle to enter the market.
The Economy
Residential real estate creates both jobs and wealth for many families, and every sale provides revenue for the government. In 2018 new construction added $1.13 trillion to the nation’s economy.
When we have a decline in real estate sales it ultimately leads to a drop in real estate prices, lowering the value of all homes. It also reduces the number of loans available to owners. In turn, consumer spending reduces, and this contributes to a downward spiral of the economy. Employment also drops, and no one wants a recession. At this point, the Federal Reserve often lowers interest rates. In 2008, falling house prices triggered a downturn. During 2007 the median price of a single-family home fell by 4% from the peak in 2005, and the signs of cracks in the economy were beginning to emerge. At the time economists could not agree on how bad things were, and of course, some communities suffered more than others.
Interest Rates
The 2008 recession is an example of how a fall in real estate impacts the economy. Falling home prices triggered the start of the downturn.
Between 2005 and 2007 almost half of the loans issued were subprime. When the borrowers defaulted the securities were of little value. The investors then tried to exercise credit default swaps and AIG ran out of funds. In turn, the bailout by the Federal Reserve took place. Banks with mortgage-backed securities ran into trouble, and the bankruptcy of Lehman Brothers started the 2008 financial crisis.
How do Demographics affect Condo Sales?
Many people are becoming edgy, and believe that the Kelowna real estate market will crash in the next few years. However, things are different now and one of them is that subprime loans make up a much smaller market percentage than in 2005 when they were worth 20% of the market.
Banks have changed lending standards, and more people are covered for medical care, due to Obamacare.
Demographics show the characteristics of a population in a given region include the type of residence, income, and educational level of the breadwinners. Looking at all these traits allows lenders to verify if the business is viable in a given region. It directly influences the market in that area when information is gathered through surveys and profiles that show what people can and can’t afford to purchase.
Climate Changes
More extreme weather events like flooding, wildfire extreme heat and drought are rising all over the country due to climate change. So the homeowner needs to consider what impact these conditions will have on those planning to buy and sell homes in the long term.
Many savvy homebuyers are now factoring climate change into their decisions of where to live. And a recent survey showed that half the respondents who plan a move in the next year said that extreme weather had played a part in their decision about where to live. Those that own a home, are forced to consider how climate change will affect their home value. As a result, certain postal codes in British Columbia, Alberta and Ontario have been selling for 3.9% less than those in the low-risk areas, as people don’t want to settle in high-risk bush fire areas.
The trend is not consistent across the country, and it appears that the fear of buying in the areas prone to fire often subsides when the risk of fire passes.
As a buyer in Canada, it is important to understand the risks associated with high-risk flood areas, as home insurance does not cover flood damage. Separate insurance can be extremely costly, but it is crucial that you take that insurance, or in the event of an extreme flood you could be left with nothing. If you are buying in a flood-prone area, Government policies will affect the real estate market, as you may not be able to get insurance, it is important that you assess the risk of the possibility of a 100-year flood event before you buy.
