Buying a house is a massively important decision. For most people, it’s the most expensive thing they will ever buy, and there are many factors to consider when choosing a home. When looking for your dream home, it’s easy to focus on the present and just think about what you and your family need right now in terms of living space.
But it’s sensible to think about the future, too. Home resale value is something everyone should consider when purchasing a property. But what exactly is it, why does it matter and what factors affect it? Read on to learn more.
What is Home Resale Value?
Put simply, home resale value is an estimate of the amount that you can expect a property to sell for in the future. Of course, it’s not an exact science, but there are some known factors that have an impact on a property’s resale value.
If the house is in a sought-after location, then it’s likely to be easy to sell on when the time comes. Things like the quality of local schools, crime rates and any new infrastructure plans all have an impact on the desirability of any area.
The holy grail, of course, is to buy a home in an up-and-coming area, so that by the time you’re thinking about reselling, the area is even more desirable and you can make a profit on the sale.
Properties of different sizes are popular with different types of buyers. In cities, small homes are more commonly desired by buyers, while in the suburbs people may be looking for a bit more space. A good real estate agent should be able to advise you on what size properties are most popular in your local area.
Layout is also an important consideration. Bungalows are often popular with older people, while families with small children tend to prefer houses where all the bedrooms are on the same floor. Lots of buyers nowadays also like an open plan layout. All these elements can have an impact when reselling a house.
Condition and Home Improvements
A property that is well-maintained is likely to attract a better closing price than one which has been neglected. The condition of a property has a far bigger impact on home resale value than its age. So it’s really important to keep up to date with maintenance and ensure that repairs are carried out promptly.
Generally speaking, home improvements and updates will increase home value. Upgrading the kitchen or bathroom will make a property more marketable, but it’s worth bearing in mind that neutral designs tend to be more attractive to buyers. If you go with something bold and on-trend now, in a decade’s time you might find yourself with an unsellable property.
Obviously and renovation which increases the number of rooms in a house will also increase the value. Bear in mind the need for good storage space, too. This is a key requirement for many home buyers.
Increasing Home Resale Value
Now you know all about home resale value and the factors which affect it. You can put this knowledge into practice the next time you’re making a decision about a home purchase.
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