RESALE FACTORS TO CONSIDER BEFORE BUYING A PROPERTY

Written By Jennifer Wilson

Not all homes are created equal. Purchasing a home can be an emotion decision for a home buyer or a business decision for an investor. No matter the reason for the purchase of the home, here are some factors you should consider before purchasing your next property.

1. Comparable Sales – Value of a home is generally determined in part by the comparable sales in the area. You can always try and do your best to find sold comparables using public website, but a licensed Realtor has access to data you may not.

2. Current & Historic Sales – Compare the current price with what the home sold for previously. Tax records can help provide this data. Your Licensed Realtor is the best person to help you locate this information. The goal is to see what the value has done over time, before, during and after changes in the market.

3. Current Market – It is important to find out if you are in a buyer, sellers or balanced market. The information is important in your decision making now but also in the future. Markets are constantly shifting but rule of thumb is if you are buying at the low now, you will most seller and make a profit if it is in few years down the line. Just remember, markets can shift at anytime so this isn’t always the case.

4. Location – Do you research on crime, zoning laws, what areas are transitioning, etc. Most of this is public information. Keep an eye on the market. How quickly are homes selling. Is it a desirable market.

5. Size of the property – Do research on what square footage typically sells in each neighborhood. In Urban areas, smaller square footage is more common, where as in suburban areas, larger square footage may be more desirable. Consult with a local Realtor.

6. Age of the Property – New construction always seem to be in demand. Typically good resale value on new construction only happens after all the homes have been built and sold. You would be competing against the builder. Homes that fall into the 20- 40 year old range cause concerns in buyers since most of the major components of the home tend to need replacing during that life span. Historic homes can also become desirable due to the charm but buyers do focus on the needed maintenance.

7. Layout – There are a few trends that are more valued.

  • Open Concept
  • Master suite – including master suite being split from the rest of the bedrooms
  • Guests House or ADU

8. Upgrades – Upgrades generally bring an increase in value but remember, not all upgrade are created equal. There are things you can do that will increase the value and some that won’t increase it at all. Make sure to connect with a local Realtor for their opinion.

There are other factors to consider in determining value; Age, neighborhood features, home’s potential, current condition, storage space, etc. You should always reach out to a local agent for guidance or you can give me a call to discuss more.

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