How to Buy a Home with Good Resale Value
Home Buying Techniques that Put Dollars in the Bank
when You Sell
You might think it's strange to consider selling a home you don't
even own yet, but what if you decide to move? Do you want a
house that has grown in value and sells quickly? Sure you do.
Most of us won't live in the same house for the rest of our lives, so
it makes sense to begin analyzing home resale values from the
very first day we set out to buy a house. Buying a home with good
resale value might take a little longer, and it might take a bit more
work on your part, but you'll love the payback later, when it sells
quickly and puts extra money in your bank account.
Here are some tips to help you find a home with good
resale value:
Location is Essential
- Locations regarded as most desirable today might not keep
that status forever, but they're good models to use when
you're searching for a home.
- Why are those neighborhoods in demand and how long
have they been top choices?
- Are there other areas in town that are increasing in
desirability?
- Does new growth in town seem to be headed towards a
certain area? Will there be plenty of services (groceries,
shopping, schools) in that area?
- Is the community changing--with residential areas shifting
over to commercial properties? (That can sometimes be a
plus for eventual value, but a negative while you live there.)
- Home Buying Tip: Always choose a home that suits your
needs, but if you can, find one in a location that others seem
to want, too.
Who's Buying?
Who are the primary home buyers in your town? If it's senior
citizens or a crowd getting close to that age, your best resale
potential might be a one level home, because seniors don't like to
do steps.
If the majority of buyers in your area are young families with
children, consider a house with a large yard that's not fronted by a
busy street. Or a house with plenty of bedrooms and baths.
- Home Buying Tip: Browse your local real estate ads. A
feature that's mentioned in numerous ads is likely one that's
in demand.
- Avoid Outdated Features
- One-bath homes sell for significantly less than homes with at
least two baths and they take longer to sell.
- Electric baseboard heat and electric ceiling heat are not as
desirable as central heating systems.
- Tubs and showers in outdated colors, or scratched from
years of improper cleaning, might be hard to change without
ripping out doors or walls.
- Popcorn ceilings date a house--you know--those bumpy
ceilings that were so popular in the 1970's.
- Home Buying Tip: Outdated features are usually a negative,
but you can turn them into a positive if you buy a home under
market value and make updates. Before you make a
decision, analyze the update costs and determine how
much they will add to the home's value.
- Don't Sweat the Cosmetics
- Fresh paint inside and out is a quick and relatively
inexpensive fix--and sometimes makes the home look like
it's had a complete overhaul.
- New appliances freshen up a kitchen. So does new cabinet
hardware.
- Adding glass doors to a few kitchen cabinets gives them a
new look--and lights inside those cabinets add soft appeal.
- It takes some time, but painting kitchen cabinets isn't
difficult--and it can change the entire character of your
kitchen for a minimal investment. Use smooth, micropore
paint rollers or small spray guns for best results.
- Skylights and sun tunnels brighten a dark home. Be sure to
buy top-quality products and install them with care.
- New light fixtures do wonders to lighten rooms and enhance
a home's character.
- New switch plates are an inexpensive way to make a room
look nicer. Browse the options online or at a home
improvement store.
- Home Buying Tip: Sometimes attention to cosmetics is all a
home needs to make it shine. Watch for homes in need of
cosmetic updates, because they're often priced under
market value.
What Are Buyers Looking For?
- Closets--lots of closets, preferably walk-in, and with as
much additional storage space as possible.
- The term light and bright is a little overused, but it's an
accurate description of one buyer favorite. Homes with lots
of natural lighting are very popular.
- Split bedroom plans, with bedrooms on each end of the
home, are increasingly popular with buyers.
- If you live in a scenic area, having a view can help you sell.
- Home Buying Tip: Popular features differ from region to
region, so try to determine what's in demand in your town.
Ask your real estate agent which features are always on
buyer want lists.
- Bottom Line
Your first objective is to buy a home that's right for you, but do
consider its resale value before you make the final decision,
especially if you know you'll move again within three to five years.
A careful purchase now will help give you extra funds to move up
with the next time you buy a home.
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