If you buy a home with good resale value, it should be fairly easy to
sell if and when that time comes. But some home buyers never consider
resale value when they buy. They make the mistake of focusing solely on
whether the home suits their own needs.
Number One Rule of Home Resale Value
Location. You hear agents repeat the phrase in triplicate: location, location, location. If you choose a home in a desirable location, odds are that location will remain in favor, which will always attract a larger pool of home buyers. Alternatively, if the location is less than desirable, it's possible that your future sales price will always be less than the other homes around it, and you may attract a smaller pool of home buyers.
A few years ago I listed a home on a busy street in the Land Park neighborhood in Sacramento. It wasn't selling because the sellers had picked a sales price in line with comparable sales around the corner, on quieter streets. I asked why they ever bought this home. Because it was the cheapest home for sale in Land Park. We lowered the price to make it the least expensive home in Land Park, and it immediately sold.
Be careful that the characteristics of the neighborhood are not undergoing a change. I once bought home in Eden Prairie, Minnesota, that enjoyed pond frontage. If I had checked the city records, I would have known a major thoroughfare was in the works about a block away. Five years later, it was difficult to sell this home with cars zooming by at 60 MPH.
Basic Indicators of a Home With Good Resale Value
First, define the type of buyer who would purchase such a home. Then think about the type of home that kind of buyer would need. Does your home fit those parameters? Here are indicators of a home with good resale value:
More than 2 bedrooms.
If almost every home in your neighborhood has only 2 bedrooms, owning a home with fewer than 3 bedrooms is most likely not a drawback. But it is a drawback if you're trying to attract, say, a couple. Many couples need a guest bedroom and an office, if not an office for each occupant. A home with 3 bedrooms or more is always a better choice to ensure future resale value.
More than one bathroom.
Buyers will still buy a one-bath home but they expect to pay much less for it. Given a choice between a two-bath home versus a one-bath home, first-time home buyers will almost always opt for the two-bath home, even if the cost to install a second bath is much less than the price difference between the two homes.
Moreover, it's not enough to simply have two or more baths. A home without a master bath will suffer a lower resale value. www.rhnws.com.au
Number One Rule of Home Resale Value
Location. You hear agents repeat the phrase in triplicate: location, location, location. If you choose a home in a desirable location, odds are that location will remain in favor, which will always attract a larger pool of home buyers. Alternatively, if the location is less than desirable, it's possible that your future sales price will always be less than the other homes around it, and you may attract a smaller pool of home buyers.
A few years ago I listed a home on a busy street in the Land Park neighborhood in Sacramento. It wasn't selling because the sellers had picked a sales price in line with comparable sales around the corner, on quieter streets. I asked why they ever bought this home. Because it was the cheapest home for sale in Land Park. We lowered the price to make it the least expensive home in Land Park, and it immediately sold.
Be careful that the characteristics of the neighborhood are not undergoing a change. I once bought home in Eden Prairie, Minnesota, that enjoyed pond frontage. If I had checked the city records, I would have known a major thoroughfare was in the works about a block away. Five years later, it was difficult to sell this home with cars zooming by at 60 MPH.
First, define the type of buyer who would purchase such a home. Then think about the type of home that kind of buyer would need. Does your home fit those parameters? Here are indicators of a home with good resale value:
More than 2 bedrooms.
If almost every home in your neighborhood has only 2 bedrooms, owning a home with fewer than 3 bedrooms is most likely not a drawback. But it is a drawback if you're trying to attract, say, a couple. Many couples need a guest bedroom and an office, if not an office for each occupant. A home with 3 bedrooms or more is always a better choice to ensure future resale value.
More than one bathroom.
Buyers will still buy a one-bath home but they expect to pay much less for it. Given a choice between a two-bath home versus a one-bath home, first-time home buyers will almost always opt for the two-bath home, even if the cost to install a second bath is much less than the price difference between the two homes.
Moreover, it's not enough to simply have two or more baths. A home without a master bath will suffer a lower resale value. www.rhnws.com.au
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