How to Assess Resale Value for First Time Buyers
One of many factors that must be considered when first time home buyers are choosing which home to buy is the resale value of properties they are looking at. Inexperienced buyers can overlook this issue and an experienced realtor who specializes in helping first time buyers will know this and (if they’re worth their salt) point out the matter so that their clients don’t make an unwise purchase.
As a first time home buyer you probably don’t expect to buy your dream house with your first real estate purchase, so it follows that at some point in the future you’ll need to sell your first home to advance up the property ladder. If you fall in love with a home that is perfect for you and only you, when the time comes to sell it could prove difficult to find a buyer.
This is where you should consult with your buyers agent, they will be able to help you assess the resale value of the properties you are interested in.
It might be a worn-out expression, but it’s true; the three most important factors when choosing a home are location, location and location! So think twice about buying a home in an undesirable spot. Busy roads, dodgy neighborhoods, noisy or smelly industrial neighbours – these are all issues that are sure to adversely affect the resale value of your property and diminish the pool of prospective buyers.
But if the home you want to buy is located in a desirable neighborhood, it’s likely that it will remain a favourable location so that when the time comes to sell the property you will attract a larger number of potential buyers.
Do keep in mind that neighborhoods can change, sometimes drastically if there is major construction planned or zoning changes that will allow for different activities than are now permitted. An experienced realtor is usually aware of any big changes that are expected to take place within the next few years and they can advise you about these factors. Imagine the effect on your resale value if you buy a house on a quiet, dead-end road only to have a major thoroughfare come through creating a huge increase in traffic!
Your buyers agent can help you recognize which features will help or hinder the future sale of your home. For example, in neighborhoods with two-car, attached garages, a single-car or detached garage may negatively impact the home’s resale value, and in some areas, a swimming pool actually detracts from a home’s resale value and makes the home harder to sell.
Usually, a home that can be expected to have good resale value will have:
AÃ¯Â¿Â½ More than 1 bathroom;
AÃ¯Â¿Â½ More than 2 bedrooms;
AÃ¯Â¿Â½ Generous storage space;
AÃ¯Â¿Â½ Ample family space, and
AÃ¯Â¿Â½ A garage.
A home that differs substantially in size, condition and features from those that surround it may be difficult to sell. Consistency with the neighborhood is one important factor in assessing a home’s resale value. The exception to this rule might be where a property needs work to upgrade it to the neighborhood standards. If you are looking for a project, this can be a great way to build “sweat equity” and increase the value of your investment.
Don’t make the beginners’ mistake of neglecting to consider the resale value of any home you are thinking of buying. It might be the perfect home for you right now, but sooner or later you will want to sell…
Take the advice of a realtor who specializes in helping first time home buyers and gauge the resale value of any home before you buy it.