There is a 1-in-2 chance that you will sell your new home within the next 10-years so you need to make sure that the house you purchase now will be equally or more appealing to those future real estate hunters. There are three things to keep in mind when you are buying a home with potential resale value.
5 Things to Consider When Buying a Home with Resale Value
- Location. Location matters. Just as you don't want to be living at the crux of a busy intersection, next door to a fire station, or directly across from the noisy interstate, either do potential home buyers. While these types of locations may save you a few thousand dollars when you are purchasing your home, they are going to cost you those same thousand when its time to sell. It is worth it to find a home in a location that is desirable, with neighbors that keep up their homes, and with a little home improvement over the next 5-10 years, you'll (hopefully) be able to gain a return on your investment down the road.
- Neighborhood. This is related to number one but takes it one step further. Sometimes a house you love is located in a quiet cul-de-sac, which seems desirable, but the houses around it are going down hill. If you get the sense that the neighborhood is taking a downturn, rather than riding on an upswing, you may want to pass on it. Home values are partially based on "comps" so if comparable neighborhood home values are coming in below what you feel your house is worth, your future home buyers will have a hard time getting the financing to meet your asking price.
- Size and Layout. Are you happy with the size and layout of your home? If not, are you planning on remodeling in the very near future? Unless your future home buyers are in the real estate market for a fixer-upper, they are going to want to love what they see the minute they walk in the door. Families are looking for move-in-ready homes, and open-floor plans are the most popular request so keep that in mind as well. If the fixtures are unattractive or outdated, plan on replacing them yourself because even cheaper, but attractive, finishes can help stage a more attractive home for sale.
Your home is a real estate investment so the more you keep future investors' needs in mind, the better your return will be.