When you are thinking about buying a house, you’ll naturally be judging how the house will meet your family’s needs. You’ll probably also weigh the house’s pros against the cons in relation to the asking price. Before you get your heart set on a place though, you should also consider the value of the house when it comes time for you to sell it. Will other buyers see the greatness you’ve observed? Will someone else love the neighborhood as much as you do?
There are several factors you should think about. While determining a house’s resale value isn’t an exact science, there are some pretty obvious things to check.
Information Your Realtor Can Provide with a CMA
Ask your real estate agent for a comparative market analysis (CMA) for the home in question. The CMA should include the activity of homes for sale in the neighborhood.
- Examine the sale prices of homes for the past year in that particular area.
- Calculate how many homes actually sold compared to homes listed.
- Check the average amount of time it took to sell a home in that area.
- Once you have finished analyzing the CMA, take it with you as you drive through the neighborhood. Check out the houses that have recently sold, gauging the general appearance.
Information You Can Gather From a Visual Inspection
Once you’ve determined a home is right for you, take a step back and really look at what it has to offer. Try to be objective about your evaluation. See the house the way others will see it in the future.
- Note the condition of the lot and the size of the yard. Most buyers look for plenty of space in both the front and backyard. In a perfect world, the lot would be rectangle since odd-shaped lots are harder to sell. Also, lots should be level.
- Yards with extensive landscaping tend to decrease a home’s sale price since they require so much upkeep and maintenance.
- Note the traffic flow and patterns around the house. If the road isn’t busy now, traffic could pick up in the future. What are the long-term plans for the neighborhood? Will any new attractions increase traffic? Are there plans for a new school to be built?
- A two-car garage will increase the likelihood of a sale. A smaller garage will decrease the home’s resale value.
- Swimming pools aren’t as favorable as they used to be. Maintenance and safety issues are a big hassle.
- The ideal home has three or four bedrooms. Also, a minimum of two bathrooms is usually required. However, 2 ½ baths are best.
- Storage space is another big selling feature. Walk-in closets are popular for master bedrooms. And bathrooms should have a linen closet.
- Most buyers demand first floor laundry facilities that are away from the main living space.
- Kitchens are one of the biggest selling features of a house. Small kitchens are undesirable. Large, spacious kitchens with an adjacent dining room are preferable.
- Also, most homeowners appreciate outdoor access from the kitchen to make backyard parties and BBQs easier. Likewise, a door from the kitchen to the garage is nice – it makes carrying grocery bags less cumbersome.
- If the kitchen doesn’t have modern appliances, you’ll have to upgrade before selling.
Right now, you probably can’t fathom selling this wonderful gem you’ve stumble upon. However, there may come a time when you want to move on. Make sure you purchase a home that is a wise investment so you won’t lose money down the road.
Guest author Denis works for Pall Spera. The agency has several Waterbury Vermont real estate listings.
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