| Things to consider for resale Buying a Home With Resale Value There are many things that should be considered when buying a home. Since most homebuyers expect to buy a bigger and better home someday in the future, resale value is an important factor in decision-making. You use the proceeds from selling one home to buy the next one. While no one can guarantee that your home will grow in value, there are steps you can take that maximize your potential gain. "Location, Location, Location" The idea is to buy a house that will appeal to the largest number of potential future homebuyers. A careful choice of location can minimize potential negative influences on future resale value, and maximize positive influences. Focusing on resale value requires you to make several different "location" choices. The first choice you have to make is "which community?" At the very least, you should narrow your choice down to just a few local communities. Local Community, Town or City Before you can actually pick out a house, you need to choose what cities or communities you would like to live in. There are many factors you should pay attention to, not only for yourself, but because you intend to eventually sell the home to someone else. Carefully choosing your community is the first step in "location, location, location" and can help maximize your future potential resale value. In addition to residential neighborhoods, there should be a healthy mixture of commercial and business districts within the area. These not only provide jobs to the local residents, shopping and dining experiences people are attracted to, but also add an income source that the city can use to upgrade and maintain roads and city services. All this helps to generate a sense of community pride. Another area of inquiry is community services. Does the city sponsor youth sports and have well maintained athletic facilities and parks? Do they sponsor community events, such as an annual parade? Are there activities available for children, teenagers and senior citizens? Your local agent, if they are a good one, will have amassed a wealth of information on these subjects of inquiry. It is also another reason to always use a local agent. Schools Even if you do not have school-age children and do not intend to have children, you must pay attention to the local school system. That is because when you sell the property, many of your potential buyers will have concerns of this nature. Are there enough schools to support the local population? If not, are there plans to build new schools? How will building new schools affect local property taxes? You should also check to see how local students score on the standardized tests. You can ask your agent about these things, but you should also get the local phone numbers so you can ask yourself. There are also school reports available for free on the Internet. Location – The Local Neighborhood The term "local neighborhood" refers to an area wide enough to cover your residential area plus nearby stores such as the "neighborhood grocery store." You want to be sure all essential shops and services are located nearby. This would include grocery stores, gas stations, dry cleaners, and convenience stores. There should also be fairly convenient access to local highways, major traffic routes, and mass transit. Location – The Residential Neighborhood Within your residential neighborhood, you want the nearby properties to be fairly homogeneous – alike in style, size, and structure. This does not mean they should all be exactly the same, either. Owners will put their own unique stamp on their homes. Your future home should be located as close to the center of this neighborhood as possible. Avoid the edges. In short, you do not want your property to back or side to a busy street. If you are buying a single family home, you do not want your property to border a condominium, apartment complex, business, school, or even a park. You also want to make sure the street you buy on is not used as a shortcut between two busier streets. Nor do you want to buy a house on a corner lot, as those tend to attract more street traffic and are not as safe for children. Buy in the middle of the block or on a cul de sac. Resale - The House Itself Lot and Landscaping Even though most real estate value is usually concentrated in the building, the lot is important, too. Homes that have walk-out lower level usually command a premium. When considering a rambler, we recommend against putting it on a flat lot. Yard sizes are smaller in modern homes than in older homes, but there should still be a decently sized front and back yard. Do not buy a house where the entire back yard is taken up by a swimming pool, for example. You will get your best value if the house is moderately landscaped or under- landscaped for the area. You can always improve the landscaping during your ownership by improving the grass and adding bushes and trees. Just do not spend too much. House Size In each residential neighborhood, houses will vary in size and rooms, but they should not be too different. If resale value is an important consideration, you should not buy the largest model in the neighborhood. When determining market value, the homes nearest to yours are most important. If most of the nearby houses are smaller than your house, they can act as a drag on appreciation. On the other hand, if you buy a small or medium house for the neighborhood, the larger homes can help pull up your value. This is one of those times where determining your "wants" versus your "needs" can be extremely important. Buying what you need in a more prestigious neighborhood may provide more financial reward than getting what you want in a less desirable neighborhood. Bedrooms and Bathrooms Three and four bedroom houses are the most popular among homebuyers, so if you can stick in that range you will have more potential buyers when it comes time to resell. Five is okay, too, as long as you do not have to pay too much extra for the additional bedroom. There should always be at least two bathrooms in a house, preferably at least two and a half. One bathroom with a place to wash up for day-to-day visitors, one for the master bedroom, and at least one to be shared by the other bedrooms. Storage Walk-in closets are extremely desirable for the master bedroom. For the rest of the house, just be sure there is plenty of closet space. Don’t forget space for linens and towels. Garages add to the resale value and you should always make sure to get at least a two-car garage. Three-car garages and larger have become highly desirable. The laundry facilities should be located somewhere convenient on the main floor of the house, but not in a place it will create an eyesore. Think about whether you want to walk up and down stairs when carrying loads of laundry. The Kitchen Family activity centers around the kitchen, so this is the most important room of the house. Larger kitchens are better, and they should be provided with modern appliances. Obviously, the dining room and breakfast nook should be located adjacent to the kitchen. In newer houses, the family room should also be extremely close to the kitchen. There should be easy access to the back yard, as there will be occasions for barbecues and outdoor entertaining. In addition, it should be a short trek between the garage to the kitchen so hauling groceries in from the car does not become a horrendous chore. Fireplaces The only room where you absolutely have to have a fireplace is the family room. A fireplace in the living room may be nice, but you pay extra for it and will probably rarely use it. At best, it serves as a focal point of the living room, but does not add much in real value. Swimming Pools Swimming pools do not provide as much added value as they once did. Safety issues about families with younger children have become more publicized than in the past, so families with small children tend to avoid homes with pools. As a result, having a pool may actually reduce the number of potential homebuyers when you try to resell the home. Buy a home with a pool for your own enjoyment, not as an investment.You will never get a dollar-for-dollar return on your investment |
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