It is true that the real estate industry is comprised of so many elements that it is difficult to discuss everything in a single blog post, but there will be enough here to help enlighten you in how the real estate industry operates, whether you are a buyer or a seller.
This industry is one of the most sought-after industries and with good reason. Many people need places to live in and houses are always in demand, whether it be during high and low demand in the market. The opportunities for finding a new home to live in are almost limitless as new homes spring up online nearly every day. Keeping up with the frequency of new homes and communities showing up in the market is one way to keep up with the flow of the industry.
Here are some vital things that you should know about the real estate industry:
For Buyers:
The real estate industry works on a supply and demand basis. This is the most important truth to real estate. Consider supply and demand the king of the real estate industry as it dictates, often, what the market will do in regard to inventory. Consider the highs and lows of inventory in the market and how it affects the economic climate. When inventory is low, prices go way up. When inventory is high and multiple homes are available on the market, then the prices go down or stay relatively the same. It is important to know this as well as cyclical seasons, which is the next point.
The industry is cyclical. If you keep watch of the current trends in the real estate market, you will notice that every season is pretty much the same. Just like with any other business, there is a high and rapid succession of sales followed by a season of dryness. There is also not as high of an appreciation compared to the season when there were many sales. This is normal and important to note when shopping for a new home.
Not all agents can be trusted. Did you know that there are many people who can just take a 48-hour course and be licensed to sell homes as an agent? Did you? Well, now you do. You really don’t want Sally down the road who has little experience in economic climate or the real estate market to find you your home. Knowing your agent is especially important, and one way to do that is to see if they have the official NAR (National Association of Realtors) trademark on their website. Someone who is a member of the NAR is guaranteed to be knowledgeable in the industry and is definitely more trustworthy than the girl who took the 48-hour course and knows little to nothing about market jargon. Kimberly Kelly is a certified realtor and is someone who will be with you every step of the way.
Offers go at a lightning fast rate. That is why it’s important to jump on an offer as soon as you find the right house for you. If you wait a long time, chances are that another person looking will jump on it before you. Then you’re stuck trying to find the perfect house when you could have gotten it if you just made that offer a day earlier.
Competition can be brutal. The competition out there for home-buyers is one of the reasons why it can get so stressful! Just preparing yourself for the competition that can be cutthroat and extremely frustrating to deal with is half of the battle.
For Sellers:
What happens outside the market affects it positively or negatively.
Like with anything else, if something positive happens, then the result of that positivity is growth. The more positive the growth, the better the outcome. It also can apply to the opposite as well. The more negativity occurs, the less good will come out of it. It can be applied to real estate in many ways, such as dynamic economic growth leads to more homes being built. Poor economic growth leads to something that is the total opposite.
A first impression is an important selling factor.
If a home is unattractive on the outside but beautiful on the inside, the chances are the house won’t sell as well. Why? But it’s beautiful on the inside! Won’t people give it a chance? Probably not. It’s in our human nature. First impressions are one of the most important parts of selling anything. If you have a beautiful, elegant home on the inside, then people will expect that level of beauty on the outside as well. Even slapping on a fresh coat of paint or pressure washing a dirty home will liven up a house and heighten its curb appeal. Remember to maintain the front lawn for showings and to hide the recycling bins. No one wants to smell stinky trash when going to an open house.
Pet odors are some of the hardest to get out.
It might not be applicable to everyone reading this blog post, but it’s the cold hard truth. Pet odors are one of the largest turn-offs in any person looking to buy a new home. If your home reeks of pet odor, the likelihood of it selling go way down. Consider changing the flooring in order to attract more buyers to your home. Even if it seems like a dramatic stretch, it is definitely worth it in the long run.
When in doubt, go neutral.
Colors like tan and beige are always in. Walls that are dark colored are less inviting and bring less light in than a lighter color like beige. Darker colors also make spaces seem much smaller and less inviting, while lighter colors will open up space and make it seem larger and homier.
Here are some truths about the real estate industry. We hope that you have come out of this feeling enlightened and one step closer to achieving the dream of purchasing or even selling a home.
