When you’re buying a new home, the last thing you’re probably thinking about is selling it. But not only should you consider how well the home will suit your lifestyle, you should also be thinking about how easy it will be to sell at some point in the future and what its potential value will be.
Even if your current intentions are to stay put for the long haul, anything can change in the future. You might be relocated for your job, or you might suffer a loss of some sort that will warrant a change. Whatever the case may be, considering the resale value of the home you intend to purchase is the smart thing to do.
Look at the property objectively from a future buyer’s perspective. Features that may not necessarily be important to you might be important to the next buyer, and vice versa.
The first – and most important – feature to consider when it comes to ensuring that your home will hold its appeal is the location. Obviously, this is a critical factor to consider for yourself as the location of your home will impact your everyday life.
If you choose a to buy a property in a desirable location, chances are that location will continue to be valuable well into the future. In addition, the home will likely increase in value over time, and in turn, you should be able to attract a larger number of buyers. On the other hand, a location that is not as desirable will have a damper on the future sales price that your home may be able to command as well as the number of buyers it will attract.
That said, anything can happen. Desirable neighborhoods can go downhill for many reasons, while less favorable neighborhoods may experience revitalization that can have a positive impact on the area and the homes within it. In addition, what may not be nuisance for you doesn’t mean it won’t be for future buyers.
A property’s location is its number one selling factor. Choosing a spot that’s in close proximity to employment, good schools, shopping, health care centers, and public transportation is typically regarded favorably and is more likely to remain valuable well into the future. The key is to buy a home that is likely to appeal to the largest pool of prospective future buyers. Taking this into consideration when you’re buying can help increase your resale value in the future.
When choosing the location of your home, it’s also important to consider its views. Obviously, it’s much more pleasant to have views of green space rather than a view of an industrial building, and the former would certainly command a higher value than the latter. But be sure to consider whether or not the view is worth paying the extra money for it and if the view will have an effect on the future sale price, particularly if there are plans for any nearby construction.
It should also be noted that buyers in some locations might not necessarily place as much importance on the view for resale value compared to things such as location or size. It’s important to understand your real estate market before placing too much weight on the view.
The lot size and features also play an important role in the future resale value of your home. Generally speaking, a larger lot is perceived as more valuable to prospective buyers than a smaller lot. That said, the lot shouldn’t be so large that it can actually turn off buyers who may see the property as more maintenance than they care to handle.
The features of the lot matter, too. For instance, a flat property is typically more convenient and functional than a lot that is significantly sloped. Where the lot is located in relation to the neighborhood also needs to be considered. A lot on a private cul-de-sac is regarded more favorably than a lot of the same size on a corner near the main road, for example.
In the same way that the lot size matters, so does the size of the home. Ideally, the square footage should be similar to other homes in the area. A home that’s much larger than all the other properties on the block will probably be devalued, while homes that are too small may not be desirable to future buyers. Homes don’t necessarily have to be “cookie-cutter” as far as size is concerned, but the home you buy shouldn’t be too different than the others in this respect.
Number of Bedrooms and Bathrooms
If buyers in the neighborhood typically look for nothing less than three bedrooms and your home only has two, this could be a major drawback in terms of resale value. While you may be paying less for the home when you buy it compared to other homes on the street with an extra bedroom or two, you’ll need to accept the fact that you’ll be selling it for less in the future.
The number of bedrooms is one of the main needs of buyers. The best value for a home as far as bedrooms is concerned is typically three or four. Young buyers typically look for a minimum of three bedrooms while four bedrooms can attract even more buyers. Any less will likely be viewed unfavorably. If you choose to opt for 5 or more bedrooms, make sure there is a potential market for this type of home and that you’re paying appropriately for the area, regardless of how many bedrooms there are.
As far as bathrooms go, a minimum of 2.5 bathrooms is best. Homes with one bathroom probably won’t get as much attention. One bathroom should ideally be located on the main level for guests, with a second bathroom close to the bedrooms. A master ensuite bathroom can add even more resale value.
One thing to consider if you’re thinking of buying a one-bedroom home is that if you add another bathroom (if the layout and size permit), you may be able to add some extra value into the home yourself that will bring in a decent ROI when you sell in the future.
The layout of a home is a crucial component in terms of resale value that needs to be taken into consideration. Typically, an open concept layout is what many buyers look for in a home for maximum function and flow. That said, you may be able to add some resale value to a home by knocking down some walls or reconfiguring the layout. Not only will this increase the home’s value, it can also help make it more practical and enjoyable for you.
One of the main features that buyers tend to look at when looking for a home to purchase is the amount of storage space available. Ideally, the home should have some closet space at the front entrance, an adequate linen closet, and sizeable closets in each bedroom. There should also be space for storing all the larger things, such as garage space, a shed, or even room in the crawl space for additional storage accommodation.
The Bottom Line
Considering the magnitude of a home purchase, you want to make sure that the home you buy checks off as many things on your list as possible to suit your needs. But while you’re considering all the things needed to make life as convenient as possible for you, it’s also important to consider what future buyers might want as well. Thinking about the resale value of your home will help ensure that you attract a larger pool of future buyers and wind up with more money in your pocket.