Did you know that the average American home has doubled in size over the past 50 years? Or that the number of single-family homes has increased by 60% since 1970? As the real estate industry continues to grow and evolve, there are many surprising facts and statistics that everyone should know. Whether you’re a first-time homebuyer or a seasoned investor, these real estate facts will give you a better understanding of the market and how it has changed over time.
Read on to learn 9 surprising real estate facts that everyone should know!
1. Real Estate is Expensive:
It’s no secret that real estate can be expensive. In the U.S. for example, the median sale price of homes was roughly $300,000 in 2020. In some of the nation’s largest urban areas, however, that figure is much higher. In 2020, the average sale price of a home in California was just under $650,000, while in Manhattan, the average was $1.4 million. Unfortunately, real estate prices are rising in many parts of the country, which can make it even harder for people to get into the market. Despite this, there are many programs and incentives in place to make homeownership more accessible, such as first-time homebuyer tax credits and low-interest mortgage loans.
2. There’s a Lot of Paperwork Involved:
Buying a home is not a decision to take lightly, and the first step is to understand all the paperwork involved. In the U.S., most home purchases require the buyer to submit documentation such as bank statements, credit reports, employment history, and tax returns. Depending on the terms of the loan, the buyer may also be required to provide proof of insurance and legal documents like a deed or title. All of these documents are necessary for the seller and financier to verify the buyer’s ability to buy the home. Completing this paperwork can be overwhelming, especially for first-time buyers. To make the process easier, many buyers choose to rent a home or hire an attorney to help them understand the requirements and paperwork.
3. The Process can be Stressful:
Buying or selling a home can be a stressful process, especially with the amount of paperwork and decision-making involved. Not only must the buyer secure financing, but they must also go through the home inspection process, appraisal process, and title transfer. Additionally, there are often competing offers and the emotions that come with the process – such as elation or disappointment when you are outbid on a great property. To decrease the stress involved, try having an experienced real estate lawyer review documents and guide you through the process. A good agent can also help by walking you through the process step-by-step and helping you navigate any potential obstacles.
4. It’s a Competitive Market:
The real estate market today is highly competitive. With people increasingly using technology to purchase homes, there are more buyers than ever before vying for the same properties. To stand out in a competitive market you need to be ready to act fast and make smart decisions. That means doing your research and understanding what is available in the area you want to purchase in. It also means knowing what features are important to you, such as proximity to amenities, school districts, and other criteria. In today’s market, being well-informed and making smart decisions can be the difference between getting your dream home or missing out on a great property.
5. Location is Everything:
Location can be a key factor when purchasing a home, as properties located in desirable neighborhoods tend to appreciate more quickly and command higher prices. In more urban areas, the cost of living is often higher, as it is closer to amenities and public transportation. But location is not just about cost – it can also factor in lifestyle choices, such as the availability of activities for children, access to parks and recreation, and social opportunities. When it comes to real estate, it really can be all about location. Careful consideration should be taken when evaluating a property to make sure it will have the features you desire and fit into your budget.
6. You Need a Good Agent:
Choosing a professional real estate agent to help you buy or sell a home is an important part of the process, as they will be able to guide you and provide advice throughout the process. A real estate agent can help you find the right property in the right location and negotiate the best possible terms. An agent will also be able to keep you up to date with current market trends, provide advice on how to best stage your home, and hunt for off-market deals. Hiring a good real estate agent can give you an advantage in a competitive market and ensure that you end up with the best possible outcome.
7. It’s a Big Investment:
Buying a home is a huge investment, and it’s important to consider all the costs associated with such a purchase. Aside from the cost of the property, buyers must also factor in closing costs, moving expenses, furniture, homeowners insurance, and home maintenance costs. Additionally, buyers should take into account the long-term costs of owning a home – such as taxes, insurance, utilities, and repairs – when budgeting for their home. In many cases, buying a home can be more cost-effective than renting, but buyers need to understand the total cost of ownership before making such a large investment.
8. You Should Be Prepared for the Worst:
While the real estate market can provide great opportunities for buyers and sellers, it is also important to be prepared for the worst. In a fluctuating market, prices can change quickly, so buyers should always have a backup plan if their first choice doesn’t work out. Additionally, buyers should be aware of the various risks associated with home ownership, such as falling prices, changing market conditions, and unexpected repairs. It’s also a good idea to speak to local real estate agents to get a better understanding of the local market and trends, as well as receive advice on the best way to approach your purchase.
9. It’s Not Always a Good Time to Buy:
While the real estate market can provide great opportunities for buyers, it is not always a good time to purchase a home. Before deciding to buy, buyers should consider the current market conditions, as well as their financial situation, to determine if it’s the right time. In some cases, it may be better to wait until