When you're treading the real estate market in search of your perfect home, there's something you should keep in mind that many buyers forget to consider. An often overlooked factor at the time of purchase is the home's future resale value. It does make sense that many home buyers may forget to consider resale value when they buy... buyers are focusing their time and attention on how the home will suit their needs while living there. By ensuring that you purchase a home with good resale value, though, you'll be saving yourself potential problems later. According to the National Association of Realtors, choosing a home should also be approached as a business decision.
The NAR points out that there are many things to consider before purchasing a home, such as the location, size and condition of the house, number of bathrooms, the floor plan and number of closets. You could fall in love with a house for its charm while easily overlooking these vital components. But armed with all the rules of the game, you can nab the perfect house for you and your family while enjoying the peace of mind that you've landed a prime piece of real estate that won't give you resale problems later.
Good Resale Value Checklist
A home outfitted with the following features is one suited up with good resale value. You can find a home with great resale potential in many communities, and by selecting your home, keeping in mind resale value, you will be doing yourself a big favor later when it comes time to sell.
Location, Of Course
The most traditional feature on our list and perhaps the most talked about, is the home's location. If you choose a home that has a desirable location, you'll attract a larger pool of buyers later. This top selling factor is important for people who are concerned about getting to school and getting to work in a timely manner. This pretty much includes everyone.
If you find a home in a less than desirable location, it's possible that the home will always suffer a lower selling price than other homes around it.
Homes that are located in quiet areas that allow easy access to the interstate and other important thoroughfares will have added value.
Homes that are located next to busy streets and heavy traffic areas are not favorable to buyers and the final selling price will suffer as a result.
Bedrooms- Enough or Too Much?
A home with at least three bedrooms is always a better choice. These days homes are built with three to four bedrooms, and anything fewer than that will have poor resale value, unless the property is in a very desirable location. A five bedroom home may sound nice, but the extra costs associated are a huge turnoff to most people, and out of range for many. Most young home buyers seek homes with at least three bedrooms.
Bathrooms- How Many & Where?
There should be more than one bathroom. If there is only one bathroom, buyers will expect to spend much less for it. But given the choice between a one bath and a two bath home, buyers will almost always opt for the two bath home. In an ideal home, the bathroom should be located on the first floor for guests and the second near the bedrooms. A home with a master bath will always add resale value.
Garage, Storage-space, Laundry Room
These features are often overlooked, but they make a huge difference in terms of comfort and convenience. But there are certain standards that are expected, and certain features that add resale value. Closets are a standard for each room, but walk in closets receive higher resale value for their increased convenience. Walk in closets these days are almost an essential, and homes with tiny closets are more difficult to sell. People want large spacious closets.
Most new homes these days have a laundry room. The best laundry rooms are conveniently located on the main floor or even in the basement. A home with increased resale value will have new washer and dryers, in addition to other new and updated appliances. Potential buyers look at these things and will pay extra for the time and money that has been put into the home.
People want a garage. Most look for a two car garage, and some look for three. But unlike closet space, extra space in the garage is considered a luxury to most people and they can easily go without. Homes with maximized resale value will have a fully enclosed, well-insulated garage with two or more parking spots.
A Home With a View
The National Association of Realtors says that homes facing a business park or a strip mall sell for less due to their unappealing view. Homes with an attractive view always sell at a premium. But this is a feature that can easily be overlooked by buyers who are more concerned with the location and size of the home. But a home's view greatly contributes to a person's state of mind as well as their perceived valuation of the property.
Take into account the home's view as well as any future developments that might impact the home later.
Updates and Renovations
The kitchen and bathrooms are the two most important rooms in the house, and a home with these rooms updated or recently remodeled will have a significant impact on the property's overall value. Kitchens are expensive to remodel, so buyers want one that is already finished and updated.
The best kitchens are close or open up to the main living area of the house, and have a door leading to the backyard for easy access to outdoor living space. As mentioned before, new major appliances improve resale value and attract buyers.
Home Layout and Landscaping
Both the home's interior and exterior are major considerations when it comes to evaluating a home's resale value. Landscaping contributes to a home's curb appeal, and curb appeal is an important factor to consider. The lot around the home should be well groomed and maintained.
Even if you're buying a home with the primary purpose of living in it, don't forget the importance of resale value. Most home buyers have future goals to move into something bigger and better someday, making resale value an important part of the decision making.
National Association of Realtors: Buy a Home With a Good Resale Value
Inman News: 6 Signs a Home Will Hold its Resale Value