If you are in the market for buying a new home, there may be some things that you’re going to notice that seem unusual to you. One of those unusual things may be that there are a lot of homes for sale in an area you’re looking to buy in.
It could be that there are several properties on one street or that there are several within a block or complex that are on the market. This may raise a red flag with you, suggesting that something may be wrong.
It is important to understand what has taken place here. Quite often, what will happen is that many people will put their property up for sale simply because something close to them has sold. They could be putting this property up for many reasons. They could be getting nervous thinking that something is wrong in the area or that there are going to be changes coming to the area and the people that sold got out early. Or they may be thinking that the neighbourhood is deteriorating.
Often when many homes in one area are for sale it could be because of something referred to as hot spotting. This simply means that a totally normal and good sale of one property has stimulated other people into selling . It may be that many of those homeowners were thinking of selling anyways and this was just the enticement that they needed. It will be particularly encouraging if the sale produced a good sum of money for the original or first seller. Hot spotting also happens when the market is on the rise or it is a hot market.
You must also realise that quite often in neighbourhoods the people living there have much in common. Many of them are within the same stages of life and have similar circumstances. So, it is not unusual that if one seller decides to move for certain reasons many others in the neighbourhood may have the same reasons for wanting to sell. For example, it could be a neighbourhood where many of the residents have been there for years and raised their family and are now entering their senior years and are ready to downsize. When this happens, it’s not uncommon to see several homes within an area go up for sale around the same time.
There could also be a possibility that the number of homes that are for sale are because they are classed as distressed sales. This is often the case in areas where the homes are classed as second homes. In these cases, the individuals selling their homes all want to free up cash or reduce their mortgages.
It is important to learn a little bit about what the reasons are for the numerous homes for sale in one area if you are thinking of taking advantage of purchasing one of them. It is also important to keep an open mind and realise that it is not necessarily a bad thing.
Once you have done a little bit of research to determine what is taking place, you will be more confident if you decide to go ahead with the purchase. It could very well be that you do discover that something bad is about to happen, like a new development, which is frowned upon, is going to be coming to the area
Before making the decision to leave the area of interest, you really need to do some further research to see how this would impact you. Your requirements may be different from those who are currently living there and desiring to move. There is definitely no reason to jump to the conclusion that because multiple homes are for sale in an area that this is a bad thing. It could work to your advantage as you are going to have multiple choices and can do some great comparisons.
The information and links provided on this website are for general information only and should not be taken as constituting professional advice. This information does not take into account the financial situation or particular needs of individual readers. Before making any decisions about matters discussed on this website, you should consider whether it is suitable for you in light of your own circumstances, and seek appropriate advice.