12 Factors That Influence Your Home’s Resale Value
One of the biggest concerns for a homeowner, a buyer, or a seller is the resale value of a home. A homeowner makes upgrades and repairs to not only suit their lifestyle and personal taste, but also make the home more valuable when it comes time to sell. Buyers are looking for a good deal on a house as well as a home that will hold its value and hopefully grow in value over time. What factors influence the resale value of a home? We break down 12 of the most important things to look at.
The number one factor in determining your home’s resale value is the old adage “location, location, location”. Factors as large as the city you live in, where in the city you live, and which subdivision the house is in are major factors. In addition, being close to schools, childcare, and outdoor recreation are important to those with families or wanting to start a family. Finally, if the home has a view, it can increase the appeal. If you can see the mountains, rivers, open spaces, or the downtown skyline, these are all positives. Conversely, if you look out onto railroad tracks, the side of your neighbor’s house, or a busy street, these will lower the value of the house.
When a potential buyer drives by the house, the exterior is the first thing they see. Making sure your home puts its best foot forward is imperative to bringing in potential buyers. A well-manicured lawn, colorful flower beds with no weeds, and clean outdoor surfaces like siding, windows, and driveway will all help your home’s value.
Open floor plan
Most newer homes have an open floor plan that allows for easy (if not seamless) flow between rooms. Older homes may have cramped hallways, a lack of a dining room, or a small kitchen. These will all be a turn-off to most buyers.
Working home systems
One of the last things a buyer wants to do is spend a ton of money on a house and immediately spend even more money when a crucial system breaks. As a seller, it makes more sense to repair or upgrade HVAC, water heaters, plumbing, and electrical systems before selling. It will give buyers peace of mind and it will net you more money during the sale because you won’t have to drop the price to offset buyer repair bills.
Roof in good shape
Speaking of necessary repairs, be sure that your roof is in good condition. Repairing a roof is expensive, but necessary. A leaky roof could jeopardize the ceilings and walls of the house if left in poor condition. A new roof provides peace of mind to the buyers and you will be able to recoup a lot of the cost in the sale price.
Having one bathroom is great for a single person or a couple. But if the couple has children or plans to start a family, they will need more than one bathroom out of necessity. Additional bathrooms are also needed when company comes to visit. As a seller, you may not be able to add bathrooms, but having a home with multiple will come with an increase in value.
Everyone loves new things. An upgraded kitchen not only looks good, but it tells potential buyers that everything is new and won’t need fixing. In the case of higher-end homes, buyers are expecting modern appliances and stone countertops. If your kitchen looks like it could be featured in a magazine, buyers perceive a higher value automatically.
Windows and Natural Light
A bright house is a happy house. If your home has plenty of windows to let in as much natural light as possible, it looks and feels better (especially if the windows face south). On top of that, make sure that the windows and window sills are clean. Dirty windows and windows with condensation let in less light and are a signal to buyers that there is an upcoming repair bill. Dirty sills are also an indication of a failing seal as well as the potential for mold. As a seller, if you see this, get it fixed. It ensures the safety of the inhabitants, and buyers like when they don’t have to do the replacing.
Being able to put all of your things away and in an organized manner is important to a homeowner. Having plenty of cabinet space in the kitchen for plates, pots, and gadgets is high on a buyer’s list. In addition, the buyers are looking for closet space to store coats, linens, and toys. Being able to check all of these boxes raises the value of your home.
More acreage=more value. A home on a bigger lot has always meant a higher sticker price. When the lot size is measured in acreage, it means the ability to build a custom home, the potential to have horses, and general seclusion and quiet.
In large cities where homes with garages are rare, even a single-bay garage can add tens of thousands of dollars to the listing price. In the suburbs, garages are common. Garages with 2 or more bays, tall and deep RV garages, and detached shops are all seen as huge value adds.
HOAs have rules that govern the look and curb appeal of the homes in the community. While restrictions on house color, fence style and height, and yard maintenance may be a turn-off to some buyers, many see it as security. The rules are put in place to secure the values of the homes in the subdivision. Since a home can’t fall into disrepair, they maintain and increase their value. As such, the homes around it increase in value as well. Buying a home is an investment, and you want that investment to increase in value. To that end, HOAs are seen as a guarantee of increased value.
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