Teeming with opportunity, the real estate market in the United States – and Utah in particular – is still going strong. For first-time real estate investors and home buyers, this is both good and bad news. While there is still a lot of desirable Park City real estate available, it can also be challenging to edge out other investors and buyers. Perhaps even more difficult is not knowing if what you’re doing can lead to a financial disaster. Below are the two mistakes that anyone investing in real estate in Park City should avoid in order to turn their property into a lucrative investment.
Mistake #1: Poor Research
Search for a television or a brand new car, and buyers will spend house scouring the web and comparing prices. When it comes to real estate, many new investors and homeowners often don’t perform that same rigorous level of due diligence because they “fall in love” with a property.
Whether it’s a rental investment property you seek or a home to settle down in, anyone buying Park City real estate needs to ask numerous questions about the home. These individuals must also ask nearly as many questions about the neighborhood or the community the home is located in. Questions to ask include:
1. What is new in the home and what will likely need to be replaced in the next five to ten years (i.e. the furnace, the roof, etc.)?
2. Will long-term construction be occurring near the home in the near future?
3. Is the property located in an avalanche zone, a flood zone or an area that is prone to problems (i.e. rats, termites, etc.)?
4. Does the home have foundation issues or permit issues?
5. What did you pay for the home and in what year?
6. Why are you selling the home?
Mistake #2: Overpaying in Park City
Since the 2002 Winter Olympics which largely took place in and around Park City, the community has enjoyed a lot of attention over the years – and rightfully so. The city is beautiful and charming, and the people residing within it are accommodating and kind. These same reasons that make Park City so appealing are what can cause home buyers to overpay for Park City real estate.
Here is how you can be sure that you aren’t paying too much for your property:
1. Look at what other similar homes in the Park City area have sold for over the past six to twelve months (a real estate broker or local newspaper will be able to provide you with such information)
2. Look at what the homes are listed for
3. Check into what the homes sold for
4. Check to see if any developments are happening in your neighborhood of interest that would make the property more or less desirable
For example, the home that you love may be situated in a quiet neighborhood now. But in two years a super center with two large corporate chains and a string of smaller boutique shops may be moving in a couple of blocks away. This can affect the value of your home as well as your desire to live in that area.