Homebuyers treading the real estate market in search of their dream home often focus on the factors that suit their needs while they living at the property. Many overlook the home’s future resale value. Yet, according to the National Association of Realtors®, you should approach choosing a home as a business decision. The location of the property, its size, layout and condition all influence whether the home is a sound investment, or whether you will have resale problems later on.
Check out the Neighborhood
Location influences the value of real estate more than anything else. Homes in a desirable location attract a larger pool of buyers; competing buyers typically push up prices. Although a good location is subjective, most homebuyers want homes on a safe, quiet street with good transport links and amenities such as schools, banks and shops. Homes facing a strip mall or business park often sell for less due to their unappealing view. Conversely, homes with a good view sell at a premium. Check out any future developments that might impact the view before you buy.
Layout and Configuration
Regardless of the square footage of the house, the configuration of the rooms plays an important role in establishing resale value. For example, inadequate bedroom and bathroom facilities could negatively impact the value of the property. Homebuyers typically want three or more bedrooms, according to the National Association of Realtors. Beware homes with five bedrooms or more, however, as this could be too much for homebuyers to handle. Walk-in closets, open plan living accommodation, laundry rooms, a high-functioning kitchen and a master bathroom usually raise the resale value
Additions and Renovations
Some remodeling projects add instant value to your home. Replacing old, worn out siding provides the greatest return on investment and achieves the highest resale price. Adding a bedroom puts your home into another price category, so convert your attic or finish the basement for an instant injection of equity. Quick kitchen fixes, such a replacing the cabinet doors and adding new sinks and faucets, typically increase the value of your home by the exact dollar amount you spend on the update. Adding a master bath can add 20 percent to your home’s value.
The Role of the Agent
The price of your home is affected by external factors. For example, if a major local employer moves out of town, the value of area homes will likely decrease. Interest rate hikes, unemployment rates and even birth rates impact house prices. Thus, it is impossible to accurately predict the future resale value of a home. However, an experienced real estate agent can help.
If your home is ready to sell, ask your agent to prepare a home value estimate. This document analyzes the current selling prices of comparable homes in your neighborhood and sets a price range for your home. For future sales, ask your agent to consider local price trends, employment statistics, transport plans and incoming employers to estimate the likelihood of you achieving a good price when you eventually sell.
Call 704-408-2834 to speak with a qualified real estate agent about your real estate needs.