So you’re thinking about buying a home. Great! Now is an awesome time to buy real estate in Middle Tennessee and I really mean it…the numbers are in your favor.
Home sales were up 26% in July 2012 compared to July of 2011. Couple that with historically low interest rates and deflated values. You really stand a good chance of finding a home that will give ya great value.
That said, here is my #1 most important real estate buying tip – Remember to look at the big picture and when looking at the big picture ask yourself these three important questions:
1. How long are we planning to live here?
Determine the range of years that you are interested in staying at a location. If your planned stay is two years then your goals are going to be a lot different than someone looking for a ten year residence. How does the school zone impact your decision?
2. What does the historical sales data and current economic climate show about the areas stability and value?
Nerd alert, nerd alert…but seriously, it is very important to balance the emotion of purchasing your favorite house with a statistical understanding of how the neighborhood has acted over the last five years along with a general understanding of certain economic impacts. For example: When the Saturn plant shut down in Spring Hill there was a negative economic impact on home values in that community. Now that GM has announced they will be reutilizing the facility, it wouldn’t be crazy to thing that there would be a positive economic impact on home values in the area.
3. What are key elements to consider when trying to project the changing value of the area over the course of the next year, two years, five years, ten years?
This is the hardest part about buying a house because you are speculating on the best information you have available and alot of times it is limited. This is where the rubber really meets the road and you have to make a decision based on facts, speculation and your ‘gut’. Don’t underestimate the power of your gut feeling. I recommend people refer to this feeling when there is no clear path. Of course that is after long detailed conversations about the data and how I interpret it.
There is great pride in taking on the role of homeowner when you buy a house. With a little planning along with making the right home purchase for your situation there really is nothing to be worried about.