As a Realtor, you may very well know how numerous most potential buyers’ demands and concerns can be. Some individuals might insist on a property with south-facing views; others might demand that a home have not a single skylight or picture window. Some of these demands are so connected to their individuality and specific tastes that they can be difficult to predict or even satisfy.
You may also know that many buyers are not well educated about what actually benefits them. For example, when buyers consider investing in the best house in a bad neighborhood, or assume they can make structural changes to a historical property, it’s your job as their real estate agent to step in with your extensive knowledge and experience in the housing market as well as specific neighborhoods and types of properties to help them make better decisions.
Imagine just how much trouble an untrained, unskilled home buyer would find themselves in if they tried to purchase a property without your help. With no negotiating skills or understanding of what exactly makes a property valuable beyond its beauty, they would surely wind up in a heap of trouble with a roof that is figuratively or even literally collapsing right above them!
It is your job to keep them informed. Most buyers have no means of even locating important property information; other information might not seem important to them. So here are five things that you should know about a neighborhood and pieces of knowledge that you will need to pass on to every potential buyer.
1. How Old Is the Neighborhood?
When a property is put up for sale, various staging techniques can be used to cover up or even blatantly distract potential buyers from serious flaws in the property. As most Realtors know, many physical flaws in a property are related to its age. How old are most of the homes in the area?
Also, does this neighborhood have important history? Certain historical neighborhoods can have higher property prices, especially if they have been legally labeled as such. Are the surrounding schools old? What about hospitals? Is this a crumbling neighborhood, or are property values in the area steadily rising?
2. How Much Are the Taxes?
Potential buyers will need to know how much of their finances will need to be allocated for income taxes. Therefore, they will need to know what the sales and property tax rates are for the property in question. Remember that tax rates and the value of a specific property do not always align.
3. How Safe Is the Neighborhood?
Crime is an important factor in determining the value of a property. However, even luxury properties can be located in crime-ridden neighborhoods. What kinds of crimes happen most often in the area? Specifically, should the homeowners be concerned about violent crime or home invasions? This is crucial information that your buyer will need to know to feel safe or stay away from a neighborhood entirely.
4. How Close Are Cultural and Entertainment Opportunities?
No matter what lifestyle a person has, access to cultural and entertainment perks can boost the current and growing value of a property. Nearly every potential buyer will want to be close to dining and shopping opportunities as well as museums, libraries, attractions, and much more. This neighborhood information can often make or break a sale.
5. How Would You Describe the Neighbors?
What are the local demographics like? Are there mostly young singles in the area or more mature families? Are there plenty of children in the neighborhood? How diverse is it? In other words, will your potential buyer feel welcomed in their neighborhood and will polarizing groups of people, like large families or college-age students, frequently be in the area? These things will allow buyers to feel interested in a friendly, diverse, and welcoming neighborhood.
By using the five pieces of information above, you can help your potential buyer come to an informed and reasoned decision about a property. A beautiful property in a bad neighborhood might not be a recommended purchase, but a well-priced fixer-upper in a great, burgeoning neighborhood is certainly a wise one. So do yourself, and your client, a favor. Instruct them on these pieces of crucial information, and you will surely gain their trust and appreciation when they finally buy a home with you as their real estate agent.