Buying a Home with Resale Value

If you are a first time buyer, you may want to buy a home with good resale value because you will probably move before you pay off your thirty-year mortgage. There are many factors to look at.

1. The Area   2. Home Size   3. Home Features

The Area- You should take a drive and see how well the area is maintained. There should be a healthy mixture of commercial and business districts. It is always wise to check local crime statistics. If available, the number of homeowners compared to renters in the area. Investors tend to buy homes as low in price as they can to get a better monthly return on their money. This may indicate that prices are declining in the area.

House Size- Also mentioned in the 25 Biggest Mistakes, each residential neighborhood has houses that will vary in size. If resale value is important, you should not buy the largest home in the neighborhood. When determining market value, the homes nearest to you are the most important. If the nearby homes are smaller, they may act as a drag on appreciation.

But, if you buy a small or medium house compared to the ones in your neighborhood, the larger homes can help pull up your value. This is one of times where determining your “wants” versus your “needs” can be extremely important. Buying what you “need” in a more prestigious neighborhood may provide more financial reward than getting what you “want” in a less desirable neighborhood.

Home Features – Typically, three and four bedrooms are the most popular among homebuyers, so if you can stick in that range you will have more potential buyers when it comes time to resell.

The more popular homes will also have at least two bathrooms – one for a place to wash up for day-to-day visitors, and one to be shared by the other bedrooms.