It seems sometimes it would be helpful to have a crystal ball. For many of us, it would help us plan better and we think it would help us make better decisions. In many ways, advisors are that crystal ball. Advisors take their knowledge of the past, trends and current happenings and create a projection of what the future holds. Sometimes those advisors are looking at the innovators to see what is “coming down the pike”.
As a Real Estate agent, I am truly an advisor. I am looking to the past to see trends, looking at the current housing situation and looking to innovators to see what the future holds. For my clients, I hope to be that crystal ball.
Like a crystal ball, a Realtor looks at the future
“the National Association of Home Builders (NAHB) has found that the typical buyer of a single-family home will stay in the property for 13 years before moving out.”
The future of the real estate market in the area is critical because it is very likely that your home will be your largest asset. Resale value is always important, whether you plan to be in your home for 10 years or 50. Because the average family spends about 13 years in a home, we want to be able to “see” what the area will look like several years out. For example, we want to look at development in the area, schools being built, new facilities, parks, conservation and more. When we look at future development, we see what the innovators are doing so we can better understand what’s to come.
In the Denver area, many smaller neighborhoods are going through a level of urban development, meaning the home values will be increasing, such as in the Highlands area of Denver. Areas near and around DIA (Denver International Airport) are being developed including increased transportation routes, making commutes easier and faster. This development will bring an increase and resurgence in residential housing there. We are already seeing this happen with new communities such as Reunion, northeast of Denver and west of DIA.
Like a historian, a Realtor looks at the past
Where the future is important for resale value, the past is important for trends. We look at what has been happening in a particular community, such as past home sales. How long have homes in the area been on the market before they sell? Are they selling for the asking price, above or below? Are the homes being foreclosed on? Rehabilitated?
Understanding the history of an area also allows us to have a stronger negotiation when we make an offer. We will know if it is better to come in with an offer above the asking price to increase our odds of getting it in a hot area. Or, we may make a confident offer below the asking price on a home that has been sitting a long time. This type of home, if in an area that is colder but we have seen redevelopment of the area beginning, could put a first time home buyer who isn’t scared of some remodel work into a positive cash position right away.
A good Realtor looks at current trends
The past shows us what has happened in the area which gives us clues about what could happen now. The innovators help us predict what will be happening when the family is likely to sell. Current trends help us complete the whole picture.
Current trends show us what is happening now in the market. We look at current inventory levels to get an idea of hot and cold areas and what is available that fits your needs. We look at mortgage rates to see how strong and competitive we are as buyers. We look at school districts, transportation and more. As a relocation specialist, I help you see more than just the house, we look at the big picture of how your new home will fit in your current life situation as well as your goals, dreams and expectations of the next decade and more.
Of course, there are things that just aren’t predictable. However, in setting some expectations and looking at the past, present and future, we can make a comfortable plan that will help your decision-making easier, just like a crystal ball.
Wanting to learn more about the Denver real estate market? What to know what your home is worth currently? Interested in your neighborhood trends or those of one you have an eye on? As a relocation specialist serving Denver for over 22 years, I’d love to help you through the process of finding your next home perfect for this stage of your life. Contact me today for a free home analysis at 303-888-6489.