For years, realtors have helped home buyers with the art of buying a home. They've offered advice when touring neighbourhoods and expertise when inspecting the home's interior. It's safe to say that even over all these years, this process has remained unchanged. Of course, we have access to more information today and with the help of the internet, it's easier to find properties online, but the process of viewing the homes in person, selecting one and making an offer, hasn't changed much.
Let's take a look at the other side of the coin - the science of home buying. The science involves using technology and data to address the common concerns that buyers have. Should I invest in this area? Is this condo a good investment? Does this home have hidden underlying issues? Does school quality impact the value of a home's value?
Some buyers might think that these questions are unpredictable and there's nothing to do to mitigate risk or concern. Luckily, we have access to more information and more data than we did years ago, to make smarter real estate decisions.
Am I buying at the peak of the cycle?
Predicting when house prices are going to fall is almost impossible. But we can analyze how and when housing markets slow down. We can use the science of home buying and latest research into residential real estate cycles to ensure that you don't fall into the trap of paying peak prices after the boom has already bust.
Should I invest in this area?
By analyzing data, it's possible to pinpoint patterns that tell us whether – and how quickly – a neighbourhood’s homes are likely to increase in value in the future. There's research on a number of predictable patterns in the way neighbourhoods change over time and in particular when it came to spotting the ones that appreciated the most. This means that the science of home buying is helpful in noticing these trends so that we have a better idea of how good of an investment our house might be, rather than simply assuming or hoping for the best.
Does this home or condo have underlying issues?
Do you think problems with property are unpredictable? There may be some truth to that, but there is likely a record of potential problems – it’s just a matter of finding this data using the science of home buying, and analyzing it before making an offer.
In the coming weeks I’ll be hosting a series of talks that will offer buyers some real life examples of how they can use data to make smarter real estate decisions. Click here to register.