Real Estate - Conducting Market Trend Research Before Buying Real Estate Property

Aside from getting married and having children, buying real estate is probably one of the most important decisions you will ever make. It is definitely the biggest investment you will ever make and it should not be taken lightly. Whether you use an agent or not, you should conduct your own research regarding market trends in the area as well as nationwide. Doing your own homework is especially important now as the housing market starts to turn around and make up for all the losses of the last couple of years. Here are some important trends to look at when conducting your own real estate analysis:

Comparable prices: Peruse the online real estate sites to see what houses in your zip code are going for. Narrow it down by neighborhood as well. This will show you what others are asking for a home that is comparable to the one you are interested in. Only look at the ones that are as similar as possible- square footage, number of beds and baths, etc. The sold amounts are the most important because an asking price may be vastly different from the sale price. Also see what extra amenities the house you like has that comparable ones don't.

Market Competition: How many other homes are on the market in the area that are similar to it? This can give you a little leverage when negotiating if the market is saturated with 2300 sq ft, 4 beds, 2.5 baths and two-car garage.

Location: Now, the location of the home you like may have an impact on the asking price even if it is exactly like another house three doors down. Maybe the lot is a bit bigger or it is a corner lot.

Condition: Once you have compared prices, drive by the properties you are interested in. How does their condition compare to the others? Maybe it has been recently painted, the interior updated from 70s shag or landscaped to add to its curb appeal. Homes can appear similar on paper, but be miles apart in person.

Days on Market: Knowing how long the house has been on sale gives you some bargaining power as well. The longer it has been, the more willing the seller will be to negotiate the price.

Digging deep with a little foot-work and Internet surfing, you can find this information yourself. Now that you are armed with this information, you can negotiate the best deal for yourself. But, don't insult the seller by going in with an unrealistic offer. However, to save yourself some time, a real estate agent has easy and fast access to the same information and they can help you make a fair offer and negotiate a good price.