Resale value is a term that gets used a lot in real estate. Everyone speaks about how you should consider this value when buying a house or while making renovations. As a homeowner having an idea of what affects resale value can save you or make you a lot of money when it comes time to sell.
Things to Consider:
1- How long you will be in the home. If this is your forever home, resale value shouldn’t phase you as much. If you are hoping to sell within 5-7 years, resale value will be of big importance.
2- Think about things about the house that you cannot change, such as the location and the size of the yard. These things affect resale value but you cannot do anything to make them different to increase your resale value.
3- While some renovations can increase your resale value, some home improvements don’t add value. For instance, a roof that is in disrepair can certainly lower your resale value and fixing it can restore the proper value of the home. However, just because your roof is in good condition doesn’t mean it adds extra value to the property.
4- When trying to improve your resale value, make changes to your home that will give you the most bang for your buck and appeal to the most people. Some home renovations don’t yield a big return on investment and some can be too personal in taste and can turn off potential buyers.
Factors that Affect Resale Value:
Everyone has heard the phrase “Location, Location, Location!” And this phrase applies to resale as well. The part of town you buy in, the traffic flow on your street, the distance to local amenities, and the school district you are located in all affect your resale.
2- Size & Layout
The size and layout have a big impact on your home’s value. You need to consider how many bedrooms and bathrooms you have, the type of living areas in the home and how they align with needs of families in that area. Additionally having a open floor plan can significantly increase the value of your home.
3- Age & Condition
The age and condition of your home also has a big impact on resale value. A home that is considered historic like a victorian from 1850 will probably hold its value better than a home built in 1970. Likewise, a home that has been well maintained will have a much better value than a home that is in disrepair.
The upgrades in your home can help or hurt your resale value. Having upgraded bathrooms and kitchens are a great selling point for a home. Most potential home buyers like to see a house that is move-in ready with minimal work that needs to be done. However, when upgrading your home do not over improve your home for the area. You must keep in mind the types of homes surrounding you because they will affect your resale. For instance, if you tile your entire home with marble in an area where ceramic tile is standard, you most likely will not see all of that money returned in equity.
5- Negative Events
Different events that occur on your property or in your home can affect your resale. Any events such as flooding, a fire, or mold growth inside the home significantly impact it. Another thing that deters buyers and negatively impacts the sale of your house are events such as crimes or deaths that may have occurred at the property. Resale value is an important part of being a homeowner. Although you may plan to be in your home for several years or even decades resale will eventually matter to you. Keep your house well maintained to ensure a home that you love that will hold its value.