If you are looking to buy a home in a big city or nearby, you might be lured by neighborhoods that are deemed up-and-coming. But how can you be sure these will be worth the investment? Here are four ways you can vet neighborhoods that are on the cusp of becoming the next big real estate boom in your area.
1. Small Stores and Big Business are Moving in
Usually commercial properties start taking hold before residential real estate really takes off in growing neighborhoods. If there is a hip coffee shop, a trendy brunch spot, or a great grocery store within walking distance, it might be safe to say that a neighborhood is about to arrive. Once these types of anchors are in place, residential real estate will start to move quickly.
2. Prime Location for Growth
If a neighborhood is shabby, but this is right in the hub of a growing city, this can take off rapidly. Look for perks such as city center proximity and access to transportation. These can be indicators that a neighborhood might turn around, especially if the general area is in an economic upswing.
3. Renovations are Apparent
If others are investing in fixer-uppers and throwing a little love into a specific neighborhood, it might be time to do the same. When eyeing neighborhoods for real estate deals, be sure to pay attention to how much care is going into renovations and assess if homes are improving or are falling apart. If there is a lot of active work going on in a neighborhood, this is a good sign that others have taken the plunge and a neighborhood will be in an upswing.
4. Keep an Eye on How Quickly Other Homes Sell
If a neighborhood is stagnant in real estate sales, this might not be the next popular neighborhood you are looking for. Start paying attention to how long homes are on the market. You can begin to notice trends when it comes to the time between homes being listed and when these move to pending status. If you can get on board when there is more traction in a given area, you might find a great deal right before a neighborhood really blows up.
If you are looking to buy a home in an area that might be more of a risk, align yourself with a real estate agent that is familiar with the location. Work to find an agent that can be honest with you about the opportunities and risks of potential properties so that you are equipped to make the right decision when it comes to up-and-coming neighborhoods.