It may seem counterintuitive to think about selling a home before you’ve even purchased it. But if you want to make a good financial decision when buying a home, then you must consider its resale value. After all, buying a home is one of the biggest financial transactions you’ll make in your lifetime, and it’s an excellent way to build wealth. Why jeopardize that by buying a home that will only decrease in value? But how do you know which homes will have good resale value – and which ones won’t? Here’s what you need to know.
The home is in a great location
You’ve no doubt heard the phrase, “location, location, location!” That’s because there really is nothing more important in real estate than location. Is the home you’re considering in a good neighborhood? Do homes in this area sell quickly and for a profit? Do you see people walking around? Are there interesting places nearby to visit, such as a park or a trendy restaurant? These are all signs that a home is in a great location and will have good resale value down the line.
The home is in excellent condition
Another thing to consider when buying a home is whether or not it is in good condition. Are there any major repairs that will need to be completed to make the home livable? This could include installing a new roof, fixing issues with the foundation, replacing all the plumbing, or replacing big-ticket systems like the HVAC (contact experts like Energy Pro Heating & Cooling for professional guidance). While you may get a home like this for a great price, you must consider how much money you’ll spend making needed repairs. Homes that are already in good shape will be more likely to have decent resale value later.
The home is in a quality school district
Even if you don’t have school-age children, it’s important to consider the school district when you’re buying a home. The quality of the school district has a direct impact on the quality of the neighborhood. Those neighborhoods that have good schools are usually in communities that invest in themselves. Homes in good school districts have always been attractive to homebuyers, and you’ll have good resale value later if the home you buy has great schools nearby.
The home is part of a homeowners association (HOA)
Not everyone loves to live in a community governed by a homeowners association (HOA). These types of communities tend to be more restrictive than others. You may have guidelines that need to be followed about what color you can paint your house, where you can park your cars, or how many overnight guests you can have visiting. But communities with HOAs tend to be popular with homebuyers, especially those who want to have a certain lifestyle. That’s why even though it can be challenging in some respects to buy a home that’s part of an HOA, you can bet that when you’re ready to move you’ll be able to sell for a price that will make you smile.