When looking for a new home, it is always a good idea to purchase a home with good resale value. A house is a real estate investment and you never want to invest your money into something that will not profit a good return. Resale value can save buyers a lot of money in the long run but is not always a guarantee. When looking for a home, here are seven signs to look for to make sure the home you are purchasing is a good resale value.
1. The neighborhood's hopping...
When house hunting, don't just focus on the house itself but also the neighborhood and its surroundings. If you love to walk, make sure the neighborhood is walkable. It is always a plus to have good proximity to shopping and restaurants.
“If you buy in an area that is not well-developed and doesn’t have good infrastructure—like shopping close by—you will not have a high rate of return on the home,” says Realtor® Patricia Vosburgh. “The more amenities, the higher chances the home will sell faster and for more money,” Vosburgh explains.
2. ....but the street itself is quiet
As mentioned in the first sign, you want your neighborhood to be hopping but you do not want a restaurant right in your backyard. Even if you love the quaint place to get a bite to eat right next to your front door, not every buyer will think this way.
“We advise against buying on a busy street or purchasing a home surrounded by commercial properties nearby,” Vosburgh says.
3. The home's systems are in good shape
A home might be located in the right neighborhood and have all the bells and whistles, but if the major systems are old, you will spend a lot more on the home, making your return less likely.
Make sure to have a home inspection before you close. An inspector can give you a rundown on how your major systems are working. Before making an offer, closely inspect the roof, water heater, HVAC system, windows and foundation.
“When these items are new or in good standing, that’s a great sign,” Kukwa says.
4. The schools are great
If you do not have kids, then you think schools do not matter, but this is not necessarily the case. If you ever have to sell your home, you limit your buyers if you are not in a good school district.
“Even if buyers personally don’t have children, for resale it is imperative that they buy in a great school zone,” Vosburgh says.
“Often agents will advertise a property as being near such-and-such school area, but not necessarily specify the district, which can be very confusing,” explains Tina Maraj, a Realtor with Re/Max North Orange County in Fullerton, CA. “It can be a real eye-opener if a buyer closes and they’re on one side of a main street that is the dividing line between the top-rated and the lowest-rated high schools.”
5. The light is inspiring
No one wants to live in a dungeon. Natural light is a great selling factor.
“Any apartment in any neighborhood that has good light will sell—and will always sell,” says New York City broker Noemi Bitterman.
With good light, “there is always a good feeling—a feeling of embracing and belonging,” she continues. “When [a home] is dark, no matter how nice and new it is, it doesn’t feel inviting, it takes a much longer time to sell, and the price reflects the lack of light.”
6. The floor plan is family-friendly
Even if you do not have kids, this is a big selling point. A family-friendly home will more likely bring in a profit. Look for at least three bedrooms with an open concept kitchen and at least one bathtub.
“Look for a home with a floor plan that will appeal to families,” says broker Kris Lindahl.
“Buying a home that is too quirky or has very untraditional features can result in a decreased ROI and smaller pool of potential buyers in the future,” Kukwa says.
7. The community is restrictive
Who wants to buy a nice house and have the neighbors yard full of junk or the house a tacky color? Homeowners associations can be a pain sometimes, but they are a positive when it comes to resale value. HOA's are there to keep everyone in line and bring value to your home.
Good resale value is never a guarantee but with these seven indicators, a buyer has a better chance of purchasing a good investment. If you are in the market for a new home, contact a Realtor in your area.
