Not only is your house a home, it is also an investment. No matter how long you live there, at some point you may decide to leave. Suddenly resale value becomes uppermost in your mind. But you actually should have considered what the resale value of the home potentially is before you even bought it.
The resale value of your house depends on many things. What is most important to consider is your own plans for that home. Do you plan to be there for 5 years or 50? Do you plan to purchase and then resell it right away to make a profit? No matter what, there are several things that will affect your home's resale value.
Location
What is a good location now is not necessarily what will be good years later. However, several things are likely to stay the same. For example, the amount of land the home is on is important because land rarely decreases in value. Things like sidewalks, mature trees and proximity to schools all figure into the value no matter what the trend is. Also, consider the population and economic growth of the area. These can help you predict what could happen to the home down the road.
Who’s Living There?
One of the things that affects resale value are the demographics. For example, if there are many baby boomers in the area, their homes may be more accessible to older individuals. While this is true now, in 10 years, these homes may not be as marketable with the same qualities -- if there are fewer buyers looking for them. Is the city young and growing? This type of planning can help you to see what the area will be like in the future.
What Features Does It Have?
You can learn what characteristics are important to current home buyers by looking at selling prices with various features. For example, how much difference does an extra bathroom make? What about new, energy efficient windows? Homes that are older may not keep increasing in value, especially if their features are becoming old or out of style.
But, realize too that there may be many individuals looking for the purchase of a home for these very qualities, as well as buyers who intend to renovate.
Get A Home Inspection
A home inspection can help you know what work needs to be done to a home within the next few years. This will help you determine the life span of the important factors of the home. What if you plan to sell in 3 years and the roof, furnace and the windows will need to be replaced during that time period? This will lower the resale value unless you update these features.
Sure, you are looking for a home to purchase for your needs today. But, think of your home purchase as not just a place to live, but that it is the most costly investment you are likely to undertake in your life. Each aspect, including the resale value is important to take note of before you make that purchase.
