How to Research the Market to Buy a Home

Are you buying a home? If so, conducting market research can make the process easier. Here's what you need to know about doing research before buying a home.

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How to Conduct Market Research Before Buying a HomeAre you buying a home soon? The first step of the home buying process is to do market research. Knowing the prices of homes in the area, talking to real estate professionals and lenders, viewing listings and taking similar steps can help you prepare to buy a home. Knowing what's available and how much homes cost in your area can help you when the time comes to buy a house.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

Look at Homes in the Community

One of the ways that home buyers can get a sense for the type of home they would like to buy is by viewing homes that are for sale. Showings can be done in person or online through video tours. It's a good idea for home buyers to view homes that they wouldn't normally consider, especially during this research phase. Staying open to possibilities can help home buyers determine their priorities.

Looking at homes enables buyers to decide what kind of features are most attractive to them. This also helps buyers write a list of must-haves versus nice-to-haves. Having this information can help home buyers narrow their focus when the time comes to search more seriously for a home.

Research Prices

Home prices vary from one community to the next and from one state to the next. Home buyers cannot know for sure how much they can expect to spend buying a home until they've researched home prices in the area where they would like to buy. Knowing how much homes cost can help buyers determine how much money they'll have to save and what they'll need to borrow.

Prices vary by neighborhood, size, features and sometimes by time of year. Home buyers who want a fairly accurate picture of how much they can expect to spend should make note of home costs and how those costs align with features and location.

View Listings Every Day

Viewing listings every day can help the home buyer start to notice patterns about homes in the community where they would like to buy. 

Viewing listings can help the home buyer determine which neighborhoods are more expensive, which neighborhoods have the most homes for sale, and which neighborhoods have the fewest homes for sale. Viewing listings is just another way to determine how much the home buyer can expect to spend as well as the features they're most likely to find in the area where they'd like to buy.

Contact Lenders

Contacting lenders is another important step in the home buying process. By contacting lenders, home buyers can find how much money they'll be approved to borrow and thus what kind of home they can expect to buy. When contacting lenders, it's important to speak to at least two or three lenders before deciding on one.

Talk to a Real Estate Professional

Talking to a real estate professional is one of the most important steps in the process of conducting research to buy a home. A real estate professional can answer questions such as:

  • Have home prices in this area been increasing or decreasing?
  • Does this market favor buyers or sellers?
  • Is the market competitive?
  • How long should it take me to purchase a house if I'm a motivated buyer?
  • What can I do to make a competitive offer when I find a house I like?

Having this information can help a home buyer decide how to proceed with the home buying process. These are good questions for home buyers to ask when they're in the process of trying to select a real estate professional. Asking these questions can help the home buyer decide which real estate professional to hire.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

Posted by Gary Ashton on
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