https://www.redfin.com/blog/new-construction-q3-2019/

Surges in both sales and building permits signal the beginning of a moderate recovery for the new-home market.

New-home sale prices dropped 1.5 percent year over year to a median of $370,300 in the third quarter. That marks the biggest decline since at least 2012 and the third consecutive quarter of declines. 

Meanwhile, new-home sales rose 5.6 percent, marking the second consecutive quarter of increases. 

New-home supply decreased 7.9 percent year over year, the biggest inventory drop since at least 2012 and the second straight quarter of declines. 

Meanwhile, existing-home prices rose 4.2 percent, sales increased 2.1 percent and inventory fell 6.9 percent year over year.

The price decline for new homes is partly a reflection of builders responding to buyer demand for affordability, which strengthened sales, as we predicted it would.  

The increase in sales also likely led to the drop in new-home inventory: Days on market were flat from the year before and there was just a small increase in new listings.

The surge in sales, along with a nearly 10 percent year-over-year increase in residential building permits—the biggest in two-and-a-half years—signals the beginning of a moderate recovery for the new-home market. 

“Buyers are returning to the new-home market thanks to low mortgage rates and relatively low prices,” said Redfin chief economist Daryl Fairweather. “And builders, also taking advantage of low interest rates to fund projects, are paying attention to preferences for affordability, which has led to more sales. Residential construction was a bright spot in the economy in the third quarter, a sign that builders are working to fill an inventory gap. As we head into the new year, I expect more new-home listings to hit the market, which should help  sustain the relatively high level of sales.”

Raleigh Redfin agent Allen Wyde said he’s seeing a resurgence in the new-home market in his area, partly because builders have begun addressing buyer demand after several years of shortages. Twenty-seven percent of homes sold in Raleigh in the third quarter were new, the highest of the metros tracked by Redfin.

“While buyers in Raleigh have always been interested in new homes, construction nearly ground to a halt after the Great Recession as builders were scared of being left with newly built homes they wouldn’t be able to sell,” Wyde said. “In the last two years, builders have loosened the reins and started constructing homes without a buyer in mind. And they’re selling.”

National new construction trends in the third quarter:

New-home sales increased annually in 50 of the 87 metros tracked by Redfin.
For new homes, the median price per square foot was $175, up 1.7% from the year before. For existing homes, it was $179, up 2.3% annually. (Price per square foot doesn’t necessarily provide a direct comparison for new and existing homes, as new homes are often located in less expensive neighborhoods away from city centers.)
The typical new home was on the market for 90 days before going under contract, just about flat from 89 days the year before. The typical existing home spent 38 days on the market, up from 35 days in September 2018. 
New listings of newly built homes were up 1.5 percent, while new listings of existing homes were down 3.7 percent. 
For all types of residential construction, building permits were up 9.7% year over year, the biggest increase since the first quarter of 2017. For single-family homes, building permits were up 3%, the first increase after three quarters of declines. 
Building permits per 10,000 people rose 8.9%. 

Metro-level highlights for new construction in the third quarter:

In Raleigh, 27% of all homes sold in the third quarter were newly built, the highest share of any metro. It was followed by New Orleans (23.6%) and Austin (21.8%).
Just 1.8% of all homes sold in the third quarter in Fort Lauderdale, FL were new construction, a lower share than any other metro. It’s followed by New Haven, CT (2.1%) and Pittsburgh (2.4%). 
The rate of building permits increased most in Bridgeport, CT (84.7%), followed by San Diego (67.9%) and Salt Lake City (67.5%). 
New Haven, CT experienced the biggest annual decline in building permits (-53.7%), followed by Memphis (-44%) and Baltimore (-41.8%). 
Nassau County, NY had a 17.3% year-over-year increase in price per square foot for new homes, more than any other metro in the U.S. Next came Detroit (15.3%) and Salt Lake City (14.8%). 
Fresno, CA saw the biggest inventory rise in the third quarter, with a 43.2% increase. It’s followed by Memphis (32.6%) and Oakland (29.1%). 
Salt Lake City experienced a 72.2% decline in inventory, more than any other metro. Next came Greensboro, NC (-40.5%) and Allentown, PA (-34.1%). 
Sales of newly built homes increased 52.7% to 113 in Fresno, CA, more than any other metro. It’s followed by Las Vegas (up 47.9% to 519 homes sold) and San Jose (up 44.6% to 120). 
Sales of newly built homes decreased most in Jacksonville, FL, down 35% to 723 homes sold, followed by Memphis (down 30.7% to 115) and Salt Lake City (down 30.6% to 475). 

See below for a downloadable set of monthly data on new construction prices, sales, inventory and other new residential market statistics. The dataset goes back to 2012.

var divElement = document.getElementById(‘viz1573675937516’); var vizElement = divElement.getElementsByTagName(‘object’)[0]; vizElement.style.width=’800px’;vizElement.style.height=’650px’; var scriptElement = document.createElement(‘script’); scriptElement.src = ‘https://public.tableau.com/javascripts/api/viz_v1.js’; vizElement.parentNode.insertBefore(scriptElement, vizElement);

The post New-Home Sales Up 5.6% in the Third Quarter appeared first on Redfin Blog.

https://realtybiznews.com/keller-williams-offerpad-to-launch-ibuying-program-in-birmingham/98756561/

Keller Offers, the iBuyer offering of Keller Williams (KW), the world’s largest real estate technology franchise by agent count and the U.S. leader in units and sales volume, is launching its latest iBuying program for consumers in Birmingham, Alabama, in partnership with Offerpad. Offerpad is a leading real estate technology company and iBuyer, who receives a new offer requests from homeowners every 30 seconds and acquires a home every 20 minutes throughout regular business hours.

Set to launch in Birmingham in early Q1 2020, the latest foray for the strategic partnership marks a pivot in its expansion strategy to reach consumers yet to benefit from a robust
iBuying experience in mid-tier U.S. markets. 

“Our agents are excited and ready to meet the demands of consumers in Birmingham with our robust iBuyer offering,” said Gayln Ziegler, director of operations, Keller Offers. “And, this
launch is the start of the next phase in our expansion. This partnership enables us to provide an iBuyer offering to more consumers, in more market sizes, while leveraging KW’s No.1 agent count footprint within the U.S.”

This mutually beneficial agreement enables consumers to have the freedom of working with a trusted KW agent, who is focused on the best interest of their client and guiding them through
the various options available to them, when choosing Keller Offers powered by Offerpad.

“Having helped thousands of consumers across the country, we are confident that Birmingham real estate agents and residents will appreciate the convenience and choice that will soon
be available for the first time in their area,” said Cortney Read, director of communications and corporate development, Offerpad. “This is the first step in a larger 2020 plan to expand services to more real estate markets.”

Keller Offers and Offerpad’s partnership is operational, or will be fully within weeks, in Atlanta, Austin, Charlotte, Dallas, Houston, Las Vegas, Orlando, Phoenix, Raleigh, San Antonio,
Tampa and Tucson.

How the Partnership Works

To leverage the partnership, KW agents will be required to become a Keller Offers Certified iBuyer agent. Once certified, agents are able to submit a cash-offer request via Keller Offers.
Training for KW agents has already begun to fully support the Birmingham launch. 

With a request in hand, Offerpad quickly generates an offer using proprietary, in-house real estate experience and technology. Then, the assured offer routes back to the KW agent, who
presents it to their seller.

The KW agent will remain the seller’s consultant in understanding all their options to move them onward. Should the seller choose to accept the instant-offer path, the KW agent will
guide the seller through the Offerpad process.

About Keller Williams

Austin, Texas-based Keller Williams, the world’s largest real estate technology franchise by agent count, has more than 1,040 offices and 185,000 associates. The franchise is also No.
1 in units and sales volume in the United States.

In 2019, Fast Company named Keller Williams the No. 1 “Most Innovative Company” in real estate. In 2015, the company began its evolution into a technology company, now building the
real estate platform that agents’ buyers and sellers prefer.

Since 1983, the company has cultivated an agent-centric, technology-driven and education-based culture that rewards agents as stakeholders. For more information, visit kw.com.

About Offerpad

Offerpad is a leading technology and real estate company with a mission to provide the best way to buy and sell a home. Leading with firsthand real estate experience and utilizing powerful
technology developed in-house, Offerpad provides direct home offers to provide modern, consumer-centric home buying and selling solutions to help more people move freely. On average, Offerpad receives new offer requests from homeowners every 30 seconds and
acquires a home every 20 minutes throughout regular business hours. Offerpad is a privately held company headquartered in Chandler, Arizona, operating across the country in 700 cities and counting. Visit Offerpad.com for more information.

The post Keller Williams, Offerpad to Launch iBuying Program in Birmingham appeared first on RealtyBizNews: Real Estate News.

https://www.redfin.com/blog/recession-housing-market-crash/

Amid global tension, trade wars and general economic uncertainty, many people are wondering if and when a recession will hit, and how it could affect the U.S. housing market. Redfin agent Jessie Culbert Boucher sat down with Redfin chief economist Daryl Fairweather to ask questions about what’s going on in the U.S. economy, if there’s going to be a recession and how to prepare for one. 

What’s happening in the economy right now that’s fueling talk of a recession?

Despite high employment numbers and strong consumer spending, the economy is relatively fragile right now. This fragility is due to global tension, trade wars and a contracting manufacturing sector. 

Will there be a recession in 2020?

There’s only about a 1 in 4 chance of a recession in the next 12 months. This number is based on economic indicators such as consumer spending, manufacturing, exports, imports and government spending. While the overall economic picture is about 1 in 4, if you just look at the financial sector, the odds are about 1 in 2. But it’s important to examine all indicators, because they all paint a bigger and more accurate economic picture.

How did housing impact the 2008 recession, and what were the ripple effects on homeowners and home prices? 

The 2008 recession was unique because it started in the housing sector with the foreclosure crisis. There was a housing bubble where home prices peaked around 2006, only to come crashing down by about 17%. Many people found themselves underwater on mortgages, entering foreclosure or selling at a loss. Not only did that bring the housing sector down even further, it also rippled into the financial sector and spread rapidly to create the 2008 Great Recession. 

Will housing prices drop in a recession?

If home prices drop, it won’t be significantly. Housing is usually relatively stable during a recession, and home prices only fall but 4-6%—if at all. For example, in the 2001 tech bubble, home prices actually kept going up. Even though the last recession is fresh in our minds, that isn’t a standard for how all recessions look. 

What are economic indicators that could predict a recession? 

Most risks to the U.S. economy come from outside the U.S. economy, such as trade wars or global weakness, which could spill over to the U.S. That could cause a recession, because if we’re not exporting enough, people may lose their jobs. Even just the threat of job loss is enough to keep consumers from spending, which could also cause a recession. But the next recession won’t start in the housing market. Yes, home prices are high, but that’s due to lack of inventory and fundamental economic reasons—not a speculation real estate bubble. 

What advice would you give to homebuyers and homesellers right now? 

If you are a buyer, don’t try to time your decision based on recession speculation. I would look more at your own personal financial situation. Ask yourself if you’d still be able to afford the home if you lost your job. How long would you be able to maintain those mortgage payments? If you’re considering selling a home, I would ask yourself those same questions. If you think your budget is going to be significantly stretched if you hold on to the home, now may be a good time to sell. 

How much money should you reserve in case a recession happens? 

My general advice, which applies to every homeowner or buyer, is to have a financial cushion in place. Six months of income set aside is a safe amount, because that’s a reasonable length of time to find a new job if you lose it. This emergency fund could save you from missing mortgage payments or selling at a loss. 

 

The post If There’s a Recession, Will the Housing Market Crash? appeared first on Redfin Blog.

https://realtybiznews.com/what-you-need-to-know-before-buying-land/98756558/

Perhaps it is your first time to plan to
purchase a plot of land. But before you get down to it. You will need to deal
with the complicated process of attaining the right plot you’d like to pick.

Buying a land requires the effort, passion, and your time. Although it is generally simpler than purchasing a property, there are few things to consider before proceeding with your plan. So, what do i need to know before buying land? Here are the things.

What’s your reason to buy land?

Perhaps you’d like to treat your land as
an asset which is much better than stocks or shares. As we know, as long as
pick a strategic land, the price will normally rise as the time goes by. Or
perhaps, you’d like to build your vacation home on it. But if you have a small
capital to start with, you might want to become one of the right holders. There
are many different scenarios which lead you to own the land. You will want to
decide it by yourself first about what you really want and what’s your goal
with this investment. When you find your own reason, you will then know the
answer about is it a good idea to buy land.

There are different types of land on
the market

You will want to get familiarized with
these types of land on the market before continuing your plan. But the main
types of land you can find are three: residential, commercial, and industrial
land.

Residential land is probably what you’ve
expected as private housing. The residential land can be a standalone
accommodation for a single family or complex to cater to multiple families. In
this case, you are investing the land for building your own property for you
and your family, as well as relatives. The residential property development can
also include other forms such as apartment, vacation home, villa, condominium,
etc. Keep in mind that each area has its own law. You will want to consult this
with your real estate agent.

Meanwhile, the commercial land is the
right term to describe your desire in building commercial properties like
office buildings, malls, public swimming pools, food centers, modern market,
parking lots, karaoke, hotels, etc.

The commercial land is an appropriate
aspect if you have no other interest than establishing your business in the
area.

The Industrial Land, last but not least,
is as the name suggests. If you are planning to conduct your manufacturing or
production and require ample space for it, then industrial land is the type of
land you will need to pick.

You will want to get familiar with those
terms before proceeding to pick a land for your purpose.

Do your homework – Research

Buying land involves the big spending.
Therefore, if you don’t want to end up in a bad position, you will want to make
an informative decision about it. Market has its own kind of spectrum. the
price can vary from one location to another. You will want to locate the most
prospective area for your goals and decide which one is reasonable enough to
spend your money with.

When you seek in your favorite search
engine, you will realize that there are a lot of lands which are available on
the market. although not all of them are publicly advertised, you can find them
out in several land seeker websites. But your best bet is to work with a
specialist land agent who specialize in the area, city, or the country you are
targeting or with the biggest market place as Consorto.
They have big networks of land and property niches so that they will come up
with the quick information that you can use. Or, you can fetch your prospective
lands from land auctions sites.

Location, location, location

Perhaps you have heard or seen this
catchy phrase somewhere in the movie, ads, Tv series, or anywhere else. The
price and value of a land can mostly depend on the location. You will want to
meticulously check on the location of the land you are scouting. Does the
location give many benefits and perks that you can enjoy? Spend time to do your
research on the area. Learn about the culture, local infrastructure plan,
geographical condition, weather, climate, political issues, or any other
aspects which you can link to this factor.

Prices

You might have been wondering how much is
it to buy a plot of land. Although the prices can vary from one area to
another, we could inform you the best estimation. The cost of a plot of land
could cost on average $3000 per acre. But if you plan to purchase land to build
something, you better need to provide larger capital for the down payment and
the costs of the projects.

Get your surveyor

You will want to make sure that the land
is worth to invest. So before proceeding the land purchases, the professional
advice is something you need to know.

The new survey should be conducted on the
vacant land you’re about to pick. Perhaps you have fetched the information
based on older survey from other surveyor. But things change from time to time.
You cannot expect the same as the previous survey. Therefore, it is much better
to hire your own surveyor for the new survey.

It is your long-term investment, or
not

You will need to be flexible on flipping
an island, if you plan that way. It can be your long-term investment, or the
short one depending on the scenarios you are facing as a businessman. But in
most cases, it is much better to get involved with the long game since you will
have a lot of potential to develop the land and sell it in a much higher price.

The post What You Need to Know before Buying Land appeared first on RealtyBizNews: Real Estate News.

https://www.redfin.com/blog/new-construction-q3-2019/

Surges in both sales and building permits signal the beginning of a moderate recovery for the new-home market.

New-home sale prices dropped 1.5 percent year over year to a median of $370,300 in the third quarter. That marks the biggest decline since at least 2012 and the third consecutive quarter of declines. 

Meanwhile, new-home sales rose 5.6 percent, marking the second consecutive quarter of increases. 

New-home supply decreased 7.9 percent year over year, the biggest inventory drop since at least 2012 and the second straight quarter of declines. 

Meanwhile, existing-home prices rose 4.2 percent, sales increased 2.1 percent and inventory fell 6.9 percent year over year.

The price decline for new homes is partly a reflection of builders responding to buyer demand for affordability, which strengthened sales, as we predicted it would.  

The increase in sales also likely led to the drop in new-home inventory: Days on market were flat from the year before and there was just a small increase in new listings.

The surge in sales, along with a nearly 10 percent year-over-year increase in residential building permits—the biggest in two-and-a-half years—signals the beginning of a moderate recovery for the new-home market. 

“Buyers are returning to the new-home market thanks to low mortgage rates and relatively low prices,” said Redfin chief economist Daryl Fairweather. “And builders, also taking advantage of low interest rates to fund projects, are paying attention to preferences for affordability, which has led to more sales. Residential construction was a bright spot in the economy in the third quarter, a sign that builders are working to fill an inventory gap. As we head into the new year, I expect more new-home listings to hit the market, which should help  sustain the relatively high level of sales.”

Raleigh Redfin agent Allen Wyde said he’s seeing a resurgence in the new-home market in his area, partly because builders have begun addressing buyer demand after several years of shortages. Twenty-seven percent of homes sold in Raleigh in the third quarter were new, the highest of the metros tracked by Redfin.

“While buyers in Raleigh have always been interested in new homes, construction nearly ground to a halt after the Great Recession as builders were scared of being left with newly built homes they wouldn’t be able to sell,” Wyde said. “In the last two years, builders have loosened the reins and started constructing homes without a buyer in mind. And they’re selling.”

National new construction trends in the third quarter:

New-home sales increased annually in 50 of the 87 metros tracked by Redfin.
For new homes, the median price per square foot was $175, up 1.7% from the year before. For existing homes, it was $179, up 2.3% annually. (Price per square foot doesn’t necessarily provide a direct comparison for new and existing homes, as new homes are often located in less expensive neighborhoods away from city centers.)
The typical new home was on the market for 90 days before going under contract, just about flat from 89 days the year before. The typical existing home spent 38 days on the market, up from 35 days in September 2018. 
New listings of newly built homes were up 1.5 percent, while new listings of existing homes were down 3.7 percent. 
For all types of residential construction, building permits were up 9.7% year over year, the biggest increase since the first quarter of 2017. For single-family homes, building permits were up 3%, the first increase after three quarters of declines. 
Building permits per 10,000 people rose 8.9%. 

Metro-level highlights for new construction in the third quarter:

In Raleigh, 27% of all homes sold in the third quarter were newly built, the highest share of any metro. It was followed by New Orleans (23.6%) and Austin (21.8%).
Just 1.8% of all homes sold in the third quarter in Fort Lauderdale, FL were new construction, a lower share than any other metro. It’s followed by New Haven, CT (2.1%) and Pittsburgh (2.4%). 
The rate of building permits increased most in Bridgeport, CT (84.7%), followed by San Diego (67.9%) and Salt Lake City (67.5%). 
New Haven, CT experienced the biggest annual decline in building permits (-53.7%), followed by Memphis (-44%) and Baltimore (-41.8%). 
Nassau County, NY had a 17.3% year-over-year increase in price per square foot for new homes, more than any other metro in the U.S. Next came Detroit (15.3%) and Salt Lake City (14.8%). 
Fresno, CA saw the biggest inventory rise in the third quarter, with a 43.2% increase. It’s followed by Memphis (32.6%) and Oakland (29.1%). 
Salt Lake City experienced a 72.2% decline in inventory, more than any other metro. Next came Greensboro, NC (-40.5%) and Allentown, PA (-34.1%). 
Sales of newly built homes increased 52.7% to 113 in Fresno, CA, more than any other metro. It’s followed by Las Vegas (up 47.9% to 519 homes sold) and San Jose (up 44.6% to 120). 
Sales of newly built homes decreased most in Jacksonville, FL, down 35% to 723 homes sold, followed by Memphis (down 30.7% to 115) and Salt Lake City (down 30.6% to 475). 

See below for a downloadable set of monthly data on new construction prices, sales, inventory and other new residential market statistics. The dataset goes back to 2012.

var divElement = document.getElementById(‘viz1573675937516’); var vizElement = divElement.getElementsByTagName(‘object’)[0]; vizElement.style.width=’800px’;vizElement.style.height=’650px’; var scriptElement = document.createElement(‘script’); scriptElement.src = ‘https://public.tableau.com/javascripts/api/viz_v1.js’; vizElement.parentNode.insertBefore(scriptElement, vizElement);

The post New-Home Sales Up 5.6% in the Third Quarter appeared first on Redfin Blog.

https://realtybiznews.com/what-you-need-to-know-before-buying-land/98756558/

Perhaps it is your first time to plan to
purchase a plot of land. But before you get down to it. You will need to deal
with the complicated process of attaining the right plot you’d like to pick.

Buying a land requires the effort, passion, and your time. Although it is generally simpler than purchasing a property, there are few things to consider before proceeding with your plan. So, what do i need to know before buying land? Here are the things.

What’s your reason to buy land?

Perhaps you’d like to treat your land as
an asset which is much better than stocks or shares. As we know, as long as
pick a strategic land, the price will normally rise as the time goes by. Or
perhaps, you’d like to build your vacation home on it. But if you have a small
capital to start with, you might want to become one of the right holders. There
are many different scenarios which lead you to own the land. You will want to
decide it by yourself first about what you really want and what’s your goal
with this investment. When you find your own reason, you will then know the
answer about is it a good idea to buy land.

There are different types of land on
the market

You will want to get familiarized with
these types of land on the market before continuing your plan. But the main
types of land you can find are three: residential, commercial, and industrial
land.

Residential land is probably what you’ve
expected as private housing. The residential land can be a standalone
accommodation for a single family or complex to cater to multiple families. In
this case, you are investing the land for building your own property for you
and your family, as well as relatives. The residential property development can
also include other forms such as apartment, vacation home, villa, condominium,
etc. Keep in mind that each area has its own law. You will want to consult this
with your real estate agent.

Meanwhile, the commercial land is the
right term to describe your desire in building commercial properties like
office buildings, malls, public swimming pools, food centers, modern market,
parking lots, karaoke, hotels, etc.

The commercial land is an appropriate
aspect if you have no other interest than establishing your business in the
area.

The Industrial Land, last but not least,
is as the name suggests. If you are planning to conduct your manufacturing or
production and require ample space for it, then industrial land is the type of
land you will need to pick.

You will want to get familiar with those
terms before proceeding to pick a land for your purpose.

Do your homework – Research

Buying land involves the big spending.
Therefore, if you don’t want to end up in a bad position, you will want to make
an informative decision about it. Market has its own kind of spectrum. the
price can vary from one location to another. You will want to locate the most
prospective area for your goals and decide which one is reasonable enough to
spend your money with.

When you seek in your favorite search
engine, you will realize that there are a lot of lands which are available on
the market. although not all of them are publicly advertised, you can find them
out in several land seeker websites. But your best bet is to work with a
specialist land agent who specialize in the area, city, or the country you are
targeting or with the biggest market place as Consorto.
They have big networks of land and property niches so that they will come up
with the quick information that you can use. Or, you can fetch your prospective
lands from land auctions sites.

Location, location, location

Perhaps you have heard or seen this
catchy phrase somewhere in the movie, ads, Tv series, or anywhere else. The
price and value of a land can mostly depend on the location. You will want to
meticulously check on the location of the land you are scouting. Does the
location give many benefits and perks that you can enjoy? Spend time to do your
research on the area. Learn about the culture, local infrastructure plan,
geographical condition, weather, climate, political issues, or any other
aspects which you can link to this factor.

Prices

You might have been wondering how much is
it to buy a plot of land. Although the prices can vary from one area to
another, we could inform you the best estimation. The cost of a plot of land
could cost on average $3000 per acre. But if you plan to purchase land to build
something, you better need to provide larger capital for the down payment and
the costs of the projects.

Get your surveyor

You will want to make sure that the land
is worth to invest. So before proceeding the land purchases, the professional
advice is something you need to know.

The new survey should be conducted on the
vacant land you’re about to pick. Perhaps you have fetched the information
based on older survey from other surveyor. But things change from time to time.
You cannot expect the same as the previous survey. Therefore, it is much better
to hire your own surveyor for the new survey.

It is your long-term investment, or
not

You will need to be flexible on flipping
an island, if you plan that way. It can be your long-term investment, or the
short one depending on the scenarios you are facing as a businessman. But in
most cases, it is much better to get involved with the long game since you will
have a lot of potential to develop the land and sell it in a much higher price.

The post What You Need to Know before Buying Land appeared first on RealtyBizNews: Real Estate News.

https://realtybiznews.com/what-you-need-to-know-before-buying-land/98756558/

Perhaps it is your first time to plan to
purchase a plot of land. But before you get down to it. You will need to deal
with the complicated process of attaining the right plot you’d like to pick.

Buying a land requires the effort, passion, and your time. Although it is generally simpler than purchasing a property, there are few things to consider before proceeding with your plan. So, what do i need to know before buying land? Here are the things.

What’s your reason to buy land?

Perhaps you’d like to treat your land as
an asset which is much better than stocks or shares. As we know, as long as
pick a strategic land, the price will normally rise as the time goes by. Or
perhaps, you’d like to build your vacation home on it. But if you have a small
capital to start with, you might want to become one of the right holders. There
are many different scenarios which lead you to own the land. You will want to
decide it by yourself first about what you really want and what’s your goal
with this investment. When you find your own reason, you will then know the
answer about is it a good idea to buy land.

There are different types of land on
the market

You will want to get familiarized with
these types of land on the market before continuing your plan. But the main
types of land you can find are three: residential, commercial, and industrial
land.

Residential land is probably what you’ve
expected as private housing. The residential land can be a standalone
accommodation for a single family or complex to cater to multiple families. In
this case, you are investing the land for building your own property for you
and your family, as well as relatives. The residential property development can
also include other forms such as apartment, vacation home, villa, condominium,
etc. Keep in mind that each area has its own law. You will want to consult this
with your real estate agent.

Meanwhile, the commercial land is the
right term to describe your desire in building commercial properties like
office buildings, malls, public swimming pools, food centers, modern market,
parking lots, karaoke, hotels, etc.

The commercial land is an appropriate
aspect if you have no other interest than establishing your business in the
area.

The Industrial Land, last but not least,
is as the name suggests. If you are planning to conduct your manufacturing or
production and require ample space for it, then industrial land is the type of
land you will need to pick.

You will want to get familiar with those
terms before proceeding to pick a land for your purpose.

Do your homework – Research

Buying land involves the big spending.
Therefore, if you don’t want to end up in a bad position, you will want to make
an informative decision about it. Market has its own kind of spectrum. the
price can vary from one location to another. You will want to locate the most
prospective area for your goals and decide which one is reasonable enough to
spend your money with.

When you seek in your favorite search
engine, you will realize that there are a lot of lands which are available on
the market. although not all of them are publicly advertised, you can find them
out in several land seeker websites. But your best bet is to work with a
specialist land agent who specialize in the area, city, or the country you are
targeting or with the biggest market place as Consorto.
They have big networks of land and property niches so that they will come up
with the quick information that you can use. Or, you can fetch your prospective
lands from land auctions sites.

Location, location, location

Perhaps you have heard or seen this
catchy phrase somewhere in the movie, ads, Tv series, or anywhere else. The
price and value of a land can mostly depend on the location. You will want to
meticulously check on the location of the land you are scouting. Does the
location give many benefits and perks that you can enjoy? Spend time to do your
research on the area. Learn about the culture, local infrastructure plan,
geographical condition, weather, climate, political issues, or any other
aspects which you can link to this factor.

Prices

You might have been wondering how much is
it to buy a plot of land. Although the prices can vary from one area to
another, we could inform you the best estimation. The cost of a plot of land
could cost on average $3000 per acre. But if you plan to purchase land to build
something, you better need to provide larger capital for the down payment and
the costs of the projects.

Get your surveyor

You will want to make sure that the land
is worth to invest. So before proceeding the land purchases, the professional
advice is something you need to know.

The new survey should be conducted on the
vacant land you’re about to pick. Perhaps you have fetched the information
based on older survey from other surveyor. But things change from time to time.
You cannot expect the same as the previous survey. Therefore, it is much better
to hire your own surveyor for the new survey.

It is your long-term investment, or
not

You will need to be flexible on flipping
an island, if you plan that way. It can be your long-term investment, or the
short one depending on the scenarios you are facing as a businessman. But in
most cases, it is much better to get involved with the long game since you will
have a lot of potential to develop the land and sell it in a much higher price.

The post What You Need to Know before Buying Land appeared first on RealtyBizNews: Real Estate News.