When you’re ready to purchase a home, whether you’ve bought before or this is your first time, you want to purchase when the market is good for you. You also want to buy in a place where the health of the neighborhood is good and improving. So, how do you know if it’s a good time to buy in a particular neighborhood? There are some indications that might help you. By looking for the right signs, you can determine if a neighborhood is improving, so you know if it’s a good time to buy in that location. Then you can make your decision on whether to wait for a while longer, look in a different location, or go ahead and put in an offer on a house you really love.
1). What improvements have been made to community or commercial areas?
If there are parks, green spaces, community playgrounds or gathering areas, or retail and other types of commercial businesses in the neighborhood, seeing what kind of shape they are in can be important. If there aren’t enough people using them or buying from them, they aren’t going to see much upkeep because they can’t afford it. For neighborhoods that are changing for the better, though, these areas will begin to see improvement, as well.
2). How is the crime rate?
The rate of crime in a neighborhood can tell you a lot about the shape it’s in. If crime was bad for a time and now the rates are much lower, there’s a good chance that the neighborhood is improving. Generally, crime rates in the better neighborhoods are much lower than they would be in neighborhoods that are less desirable. Crime can still happen anywhere, but the total amount of it on an average, statistical basis is what to look for. If you see crime rates making some serious improvements, the neighborhood is most likely changing for the better.
3). Do the investors buy property there?
The purchase of a home is a big decision if you’re going to be living in it. It’s also an important decision if you’re an investor, because you want to make your money back. Some investors buy a house, fix it up, and flip it for a profit. Others buy houses and rent them out. Either way, an investor isn’t going to buy in a neighborhood where no one really wants to live, because it’s not a good financial decision. If you see that investors are buying up properties in a neighborhood, you may want to consider that you should, too. Property values will be on the rise as the neighborhood improves.
4). Has the grass gotten cut recently?
When you want to buy a great place, it’s important to look for one in a neighborhood that is already great or getting better. People taking pride in their yards may seem like a small thing, but it’s a good sign that the neighborhood is on the upswing. If residents feel like it’s safe to be outside doing things, and they want their properties to look good, they will cut the grass, trim the hedges, plant flowers, and do other things in the yard that will make it look better than before. When you see those kinds of things happening a lot, that can be a good indication that the neighborhood is starting to change and improve.
5). Have you seen more houses being bought and sold?
One of the things to look for when buying your house is the number of comparable sales in that neighborhood and how recent they are. These sales are usually used to help the appraiser come up with a value for the house, but you can use them to focus on whether people are moving into or out of the area. If houses are selling that means someone’s leaving, but it also means that someone else wants to move in. The more people that move into the neighborhood, the more likely it is that people are seeing the value of the place and that the neighborhood is continuing to improve.
6). What are residents doing to improve their properties?
Neighborhoods that are changing for the better will be more easily spotted by the number of people who are improving their houses. Maybe the neighbor across the street got a new roof, or the house down the block was just freshly painted. Looking for those kinds of indications is important when you’re determining whether a neighborhood is getting better, since people who have the money to fix up their houses and take pride in their neighborhood will help you see what you can expect if you move there.
7). Are people moving back in?
Vacant houses that have been sitting for a long time can be a strong indication of a neighborhood people don’t want to move to. If these houses start to sell, the odds are high that the neighborhood is starting to turn around. When you like a neighborhood but you’re not sure if it’s the right one for you, keep an eye on the houses that have been vacant and see if they start to sell. When they do, you may want to make your move and buy a house there before the property values rise too much and you find that it’s much more expensive to purchase the home you want.
2 Point Highlight
When you want to buy a great place, it’s important to look for one in a neighborhood that is already great or getting better.
By looking for the right signs, you can determine if a neighborhood is improving, so you know if it’s a good time to buy in that location.
