Info for Buyers

A declining market can be a great time to reap the rewards of a real estate investment. When preparing to purchase a home or property there are several principles of evaluation you should consider:

• Does the original purchase price of the property and any capital improvements made since that purchase establish an accurate cost of that property?
• What is the estimated price the owner is willing to accept for that property?
• What is the value of the property to you as a purchaser and what concessions are necessary for the circumstances of the market in placing an appropriate bid?
• What is the market value of surrounding homes or properties?
• Does the home or property have a regressive or progressive value? Regression is the decrease in value when surrounded by smaller homes or other negative economic or environmental factors in the area. Progression is the potential increase in value when surrounded by larger homes, newer developments or positive growth factors in the area.
• What is the value of amenities of the property and surrounding area? This substitution value is determined not by the investment made in the property, but rather the value derived from that investment or available amenity.

Considerations of pricing:

• Is the seller looking to recover original costs for improvements made to the home?
• Is the price based on the seller's financial needs instead of market value?
• Is the price based on the location and not the actual value of the existing home?
• Is the current market progressive or regressive?
• Is there bargaining room?
• How long has the property been on the market?
• How urgently do the seller's have to move?
• Will there be any third party purchasers in the future that you are aware of?
• Will there be any major economic or environmental changes in the area in the near future?

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6 Month Open 6.35%

6 Month Convertible 4.85%

1 Year Open 6.55%

1 Year Closed 3.90%

5 Year Closed 5.99%

10 Year Closed 6.90%

NOTE: Rates are provided for information purposes only. *Rates are subject to change*