Before you purchase a house, make certain to consider its resale value. If you don’t plan to reside at the house for the rest of your life, it is important to have a firm understanding of a house’s resale potential before submitting an offer to the seller. In the end, a house is among the most critical financial and personal investments you will ever make. Therefore, it’s essential that the house appeals to buyers later down the road. In general, a home with good resale value is typically a fantastic investment, even while a house with terrible resale value might not be worth your time or money. So how do you know if a home has good resale value? Here is our guide to knowing the resale value of a home.
What’s a home’s resale value?
A home’s resale value is its estimated value later on. Many things, including any improvements made to the house and the total age and condition of the house, can affect the resale value”
How do you know if a house has good resale value?
Though you can’t consistently predict the future (or housing market volatility), you can predict quite a few variables that will most surely play into a home’s resale value. Here are five signs that a home has good resale value.
The Residence is located in a sought-after place.
Purchasing a house in a good place ensures that your house will be a hot commodity once it hits the marketplace later on. This is also true for property located within an up-and-coming community, where home prices are on the rise. If you’re in a position to buy a property and get in at the ground level, then you might have the ability to earn a penny when it is time to market. As long as the location is continuing to enhance and attract new buyers, your investment will probably pay off later down the street.
Close proximity to highly-rated public colleges and popular private schools are extremely valuable to a home’s resale value. Even if you don’t have children, you should look closely at the quality of nearby schools. If the home is not zoned for quality schools, then you’re certainly limiting your buyer pool later on. Families with school-age children will likely look elsewhere as it comes to time to purchase a home.
The curb appeal is there.
A home can have all of the bells and whistles indoors, but without at least a certain amount of curb appeal, it’s going to be tricky to sell the house later on. Naturally, as long as your home has curb charm potential (meaning: you are able to improve it using a tiny bit of landscaping and paint), then there is no need to worry too much about the curb charm’s future impact on resale value. On the flip side, if the outside this home has undesirable characteristics that are not easy to eliminate, then you should think twice before buying the property.
The floor plan works to get a broad pool of buyers.
A few important features to note: 1) one-story homes have the greatest resale potential, thanks to a lack of stairs. Older buyers and people with physical constraints find one-story homes to be well-suited for their requirements. 2) Families with young kids often find it is easier to have all the bedrooms on the same floor. Bearing this in mind, houses with a master bedroom onto another floor may have difficulty selling in certain markets. 3) Three-bedroom houses tend to attract more buyers than two-bedroom homes. 4) A somewhat open floor plan with a thoughtful and smart stream will appeal to the majority of buyers.
The neighborhood is considered safe and silent.
Purchasing a home in a neighborhood with higher crime rates will make it tough to regain your investment down the line. A home with good resale value is generally one that’s located on a secure and quiet street, away from the hustle and bustle. Here’s how to find out how safe the area is before purchasing a home.
A home without much resale value will generally take more time to sell. Maybe it has a funky floor plan, a lot of stairs or is located in less than desired location. Whatever the reason, it’s long term on the current market is certainly a red flag that it could not be a good investment.
It is the most expensive (and over-priced) house on the cube — Purchasing the most expensive house on the block is a big no-no for anyone concerned about resale value. Unfortunately, these pricey homes are less likely to appreciate in value because of nearby comps being considerably lower. In addition, it’ll be more difficult to locate a buyer who is prepared overpay to be on a specific street when neighboring homes available are less costly. For this reason, it’s particularly important that you listen to some location red flags while looking for a house. For instance, a nearby street, poor schools, empty storefronts or neighbors with towering lawns may be a red flag that the place is not good for resale value.
The residence is in poor condition — When the house is in poor condition, then it probably doesn’t have great resale value. Buyers attention about a house’s systems (think: HVAC, electrical and plumbing). These ought to be in great, working condition, otherwise you’ll wind up having to pay for costly replacements. Other important features to pay attention to include the condition of the yard, roof, closets, garage and finishes. Remember that if the residence is in bad condition, you’ll end up having to shell out money on a number of costly improvements, which could offset any kind of profit you do wind up making as it comes time to sell.
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