It Takes an Educated Buyer to Purchase the Right Home

Guest Post by Megan Gates

 

 

 

 

 

 

 

 

 

Do as much research as possible before you buy a new home. As an educated buyer, you will have the knowledge to make the best possible decision about your purchase. Having knowledge about the real estate market and process can also make the transaction that much easier.

The first major advice for buyers navigating the market is to hire a real estate broker. Research brokers in the area, and meet with them to determine who has the best grasp on what you’re looking for in a property. The best broker for the job understands the market and knows what their clients want in a property. The broker ultimately links their clients with the best properties for their investment, taking all of the guesswork out of the process. Once you’ve found the right broker, finalize the must-haves for your property and secure your budget.

The average buyer, however, doesn’t fully understand the process of assessing a property worth investing in. In a recent broadcast of “Eye on Real Estate with Dottie Herman” titled, “The Art of Negotiations,” Dottie Herman, the CEO and President of Prudential Douglas Elliman, discussed the three most important aspects to buying a home.

Herman discerns surprisingly different levels of interpretation regarding “worth.” While they may sound very similar in context, worth, value, cost, and price have very different meanings in the real estate market.

Calculating Value

Regarding value, Herman states, “It’s an opinion of what you think the home is worth, based on how you’re going to use it.” Value is calculated differently for everyone depending on his or her lifestyle. For example, if you use public transportation frequently and a property is located near public transportation – that increases the value of that property to you. For someone else who doesn’t use public transportation, their value calculation on that property will be less.

What is Cost Anyway?

Regarding costs, Herman stated that sellers believe the cost of the house is what they paid for it plus all the improvements and money that they put into it after that. She elaborates to say that, “Cost is [just] a measure of the past.”

When sellers improve their homes, they are increasing the “value” of the home, rather than the actual “cost” of the home. Each potential buyer measures value of the home differently. So the final offer price will usually not be the same from buyer to buyer. For example, if a home is move-in ready, a buyer may be willing to pay more on the “cost” of the home because that “value” is there. And it is for this reason that Herman emphasizes, “Cost and value are not what the price of the home should be or shouldn’t be.”

Pricing Property

Regarding how to determine if a property is priced correctly, Herman says, “Price is what the home should be worth today. But sometimes people don’t price it right, so what you really want to look at is fair market value.”

Fair Market Value

To understand this, ask yourself “what’s the property worth with the conditions we are in today?” Ask your broker this question, or research other properties that have been listed and sold in your target area.

It is important to find properties similar to your prospects that have sold in the last 6 months. Factor in how long they were on the market before selling. Examine the properties in person and compare them to the ones you are considering.

Fair market value is extrapolated from your own preferences and observations in comparison to similar properties. Herman warns to be aware of what Brokers Price Opinion or a CMA (Comparative Market Analysis) won’t tell you.

What the Broker’s Price Opinion or CMA Will Not Tell You:

Wear and Tear

Herman describes wear and tear by comparing two exact homes. After years of use and occupancy, expect two identical properties to present with similarities and differences. This includes the interior updates, repairs and landscaping. Get inside of the property you’re considering for purchase. If you have a good broker, he’ll research all of these details to protect your interest and investment.

Neighbors

Neighboring properties can certainly affect the value, and potentially, the price a home sells for. Neighborhood upkeep greatly affects the value of your investment. Investigate this before making a financial commitment to the property.

The View

Many homeowners purchased properties just from the view. The view from the home affects the value of the property, generally in a positive way. Views of mountains, water, or a golf courses add value and generally increases the price. Many people pay a premium for a view. As Herman says, “you can always find a home, but you can’t replace the view!“

Location

The strategic location of a property, and its proximity to schools, shops and work, greatly affects the purchase decision of many potential homeowners. People prefer alternatives to private school, particularly in the New York City, if they can find a great school district and a home to match their wants and needs.

Go online and do just a little research, such as in Brooklyn Real Estate, to find school district reports and information on the location of a home. Herman reiterates that it’s most important to go look at the properties, along with the surroundings and the neighborhood, to know what value and price you are looking at.

Each property will have different factors that will affect the value, and in turn, may change the price. Appraising is an estimate and Herman states, “there is no exact science to pricing.”

Share on facebook
Share on twitter
Share on google
Share on reddit
Share on pinterest
Lakes Region NH

Lakes Region Market Competition is Fierce

We are now entering March, the unofficial beginning of our Spring Selling Season. We have …

Read More →
Home inspection report

Reasons Why You Should Not Waive a Home Inspection

We have a very competitive real estate market here in the Lakes Region due to …

Read More →
Photo of homes in New Hampshire's Lakes Region

NH’s Housing Inventory Needs One Thing — LISTINGS

This week I’d like to provide you with a summary of what New Hampshire’s Real …

Read More →
Wicwas Lodge and Lakeland School Property

Roche Realty Group sells the historic Wicwas Lodge / Lakeland School Property

Roche Realty Group, with offices in Meredith and Laconia, recently sold the Lakeland School property …

Read More →
Night picture of Laconia NH

Lakes Region—One of the Countries Hottest Neighborhoods in 2021

Imagine it’s Super Bowl weekend and there’s not a chicken wing or a pizza to …

Read More →
Hiking in New Hampshire

New Hampshire, Vermont, and Maine Peak Attractions

In my younger years in school, I always loved geography as a subject. Living in …

Read More →
Moving day

How to hand your home over to its new owner

Remember your first home? Whether it was a freshly painted rental or your first investment …

Read More →

Roche Realty Group Reports Sales of $146.5 Million for 2020

Frank Roche, President of Roche Realty Group, Inc with offices in Meredith and Laconia, has …

Read More →
Lakes Region NH vs San Francisco, CA

“Lifestyle Finder” For Your Move to or From The Lakes Region

Some studies place moving to a new location as one of the top ten most …

Read More →
Lake Winnipesaukee, NH

Winnipesaukee, Newfound and Squam Lake Accolades

Winnipesaukee, Newfound and Squam Lake Accolades It’s always fun to read articles where Lake Winnipesaukee …

Read More →
Kevin Shaw - Roche Realty Group

Kevin Shaw of Roche Realty Group is Top Producer for 2020

LACONIA — Frank Roche, president of Roche Realty Group with offices in Meredith and Laconia, …

Read More →
Center Harbor, New Hampshire

Jaw Breaking Price Increase in 2020 vs. 2019

Last week I pulled up comparisons on year to date sales of waterfront homes on …

Read More →
NH Lake Sales Activity - picture of lake with mountains and homes

Lakes Region Waterfront Sales 2020 vs. 2019

We’re getting near the end of the year, and I thought I would pull up …

Read More →
condominiums on lake winnipesaukee nh

No Better Time to Sell Your Home

We’re heading into the holidays, and all the local Realtors® are busy. They are out …

Read More →
Real Estate News Headlines - Lakes Region NH

Real Estate and Market News

There’s a lot going on out there in the marketplace. So much in the news …

Read More →
Picture of NH condominium home with pool

Affordable Housing is Always in Demand

There’s a lot of talk lately about the lack of affordable housing in the Lakes …

Read More →
Kitchen renovation

Small Improvements Make a Big Difference

During this past spring and summer, a large number of homeowners throughout the Lakes Region …

Read More →
Sales Volume and Prices of Luxury Homes Raising Nationally

Sales Volume and Prices of Luxury Homes Raising Nationally

Many national headlines are talking about the booming high-end vacation home market, in addition to …

Read More →
Support Small Businesses

Are we seeing a retail apocalypse?

During this past summer, I have been talking mainly about the exploding residential real estate …

Read More →
House and cash on a balance scale

Tips for Buyers in a “Seller’s Market”

We are currently experiencing a strong seller’s market here in the Lakes Region. 2020 has …

Read More →
Randy Miller Joins Roche Realty Group

Randy Miller Joins Roche Realty Group

Frank Roche, President of Roche Realty Group, Inc. with offices in Meredith and Laconia, is …

Read More →
New Construction in the Lakes Region

Lakes Region Construction Activity Update

It has been a wild summer out here in the Real Estate industry!  I thought …

Read More →
The Opera House in Laconia NH

The Vision behind the “Opera House” Renovation: Revitalization of the Lakeport Area

There is a lot of excitement brewing in the Lakeport area! Previously shuttered for decades, …

Read More →

Roche Realty Group Sells Trustworthy Hardware Building

Laconia – Tom Drouin of Roche Realty Group represented both the Seller and the Buyer of …

Read More →
Highland Ridge

Strong Demand at Highland Ridge With 20 Home Sales.

Sales of newly constructed homes throughout the Lakes Region have been very brisk the past …

Read More →
Hikers overlooking the lake in New Hampshire, voted "Best State to Live in America" in 2020.

New Hampshire Leads the Pack Again!

New Hampshire Leads the Pack Again! A recent article on moneywise by Esther Trattner showed …

Read More →

Hot Markets Around Lake Tahoe and Lake Winnipesaukee

I was reading a recent article on CNBC by Robert Frank the other day where …

Read More →
NH River Kayaking

Rolling down the river

A month and a half ago, we had a fun kayaking trip down the Merrimac …

Read More →

Historic Landmark is a Focal Point of Windward Harbor on Lake Winnipesaukee

Visitors to Lake Winnipesaukee have long recognized the special qualities of Windward Harbor. Its deep …

Read More →
South Down Shores on Lake Winnipesaukee, NH

How Did South Down Shores and Long Bay on Lake Winnipesaukee Get Started?

When construction started in 1981, Laconia’s South Down Farm offered an ideal picturesque setting for …

Read More →
Balmoral on Lake Winnipesaukee

Four Season Living at Balmoral on Lake Winnipesaukee

There are so many water-access communities in the Lakes Region that provide great memories. Let’s …

Read More →

An Overview of Governor’s Island on Lake Winnipesaukee

Find Governor’s Island Homes for Sale The Lakes Region is known for its abundance of …

Read More →
Suissevale on Lake Winnipesaukee, NH

Suissevale: A Desirable Community on Lake Winnipesaukee in Moultonborough

When you navigate the shores of Lake Winnipesaukee, there’s 71 square miles of water and 274 …

Read More →
Gunstock Acres in Gilford, NH

Gunstock Acres in Gilford: A Popular Water Access Community

Find homes for sale in Gunstock Acres We have so many interesting communities in the …

Read More →
The docks at South Down Shores in Laconia

The Impact of Second Homes in the Lakes Region

As I drive around the Lakes Region during this period of social distancing, I’ve been …

Read More →
At the top of Piper Mountain, New Hampshire

Hiking in New Hampshire

Hiking is an excellent (and free!) way to stay in shape, and the awesome feeling …

Read More →
Wolfeboro NH

Thankful to be Living in New Hampshire During This Difficult Period

All of us in the Lakes Region have seen a tremendous impact to our lifestyles …

Read More →

How we are embracing technology to continue to serve our clients and customers during this COVID-19 outbreak

The fast-spreading Coronavirus has created an enormous impact on all of us. Draconian measures to …

Read More →
Roche Realty Group Meredith Office

Roche Realty Group Reports Sales of $130.4 Million for 2019

Frank Roche, President of Roche Realty Group, Inc with offices in Meredith and Laconia, has …

Read More →
Kevin Shaw Realtor

Kevin Shaw of Roche Realty Group, Inc. Produces $36.6 Million in Sales for 2019

Laconia, NH – Frank Roche, President of Roche Realty Group with offices in Meredith and Laconia, …

Read More →
Warming feet by a fire at home

Home and Holiday

If you think about it, many classic Christmas songs (and movies) are centered on the …

Read More →
Thanksgiving for NH

Thanksgiving for New Hampshire

We have so many reasons to be thankful to live in New Hampshire. I have …

Read More →

There are many reasons to live in New Hampshire

It is said that the three most important words in real estate are “location, location, …

Read More →

2019 Parade of Homes to be held October 12-14

Get inspired this weekend with the latest in building trends and innovations! The 2019 Parade …

Read More →
White Oak Motel and Lakefront Cottages Sold

White Oak Motel and Lakefront Cottages Sold

Holderness– The White Oak Motel and Lakefront Cottages located on White Oak Pond has recently …

Read More →

Lakes Region real estate activity for the first 8 months has been strong

Article by Frank Roche, President of Roche Realty Group.    Real Estate activity for the …

Read More →

Historic Homes: Buy with Your Head as Well as Your Heart

Historic Homes: Buy with Your Head as Well as Your Heart I’d like to recommend …

Read More →
Northeast Storage has purchased a commercial building located at 57 Reservoir Road.

Northeast Storage purchases unique Reservoir Road building in Meredith

MEREDITH — Northeast Storage has purchased a commercial building located at 57 Reservoir Road. Tom …

Read More →
111 Church Street, Laconia

Former Lakes Region mental health building listed and sold by Roche Realty Group

LACONIA — Rick Hagan of Roche Realty Group in Meredith, NH represented the seller, Lakes …

Read More →

Live where others dream of vacationing

https://youtu.be/7G5Z4QRBzzc Weirs Beach is a recreation destination with something for everyone, including beautiful lake and …

Read More →

Leave a Comment