Real estate prices are always in flux, depending on the locations involved and the market conditions which exist at the present time. It is impossible to put an objective worth on any piece of real estate long-term. Instead, properties must be valued under current market conditions only and that value is likely to change as time passes.
In stable real estate markets, the price of a home may not change at all while it is listed. In volatile markets, the price may have to be adjusted several times in order to keep the residence competitive with the most up-to-date market conditions.
This discussion will help sellers to extract the most value from their real estate investments, regardless of the current economic climate.
Ever-Changing Real Estate Prices
Real estate is considered a good long-term investment, but history shows that it can also be a terrific short-term investment or a nightmare of a risk in some declining markets. Real estate is not easy to liquidate in many cases and owners may have to prepare for a long sales process in order to pull money out of their property holdings. However, this is not always true.
Real estate costs will depend on many factors, including the relative strength of the economy in a given area, the demand and supply of available properties in the area and the desirability of the area and the property itself. Fortunes have been made using the principles of real estate investing, while fortunes have also been lost.
Home Staging and Real Estate Prices
Regardless of what type of market conditions exist, home staging has proven itself to always be an asset for sellers.
Staging facilitates an easier, faster and more profitable sale in any economic climate. However, in down times, this benefit may be reduced compared to times of booming activity in the property sector.
No matter what is occurring in the economy, one simple fact remains true: Home staging will always put a property at an advantage over its comparable unstaged competition. Additionally, the cost of staging is almost always seen as easily justifiable, when contrasted to the benefits of home staging on the sales process. In essence, the investment is recouped, often many times over, in terms of time, effort and money.
Bottom Line on Real Estate Prices
“Buy land because they are not making any more of it”. This is an old saying and over time, it has proven to be the way to wealth for countless real estate investors. Good markets and bad markets come and go, but over the long haul, the price of property, just like the cost of everything, continues to rise worldwide. Of course, this rate is variable depending on many factors.
I can tell you from my own personal experience that a good real estate deal can really help you economically. I bought a house in 2000 and sold it 3 years later for almost double the original price. I accomplished this due to changing market conditions, some sweat equity and of course, the power of idyllic home staging.