If you are looking to buy a home, you may be interested in how to determine resale value for the future. In other words, is the house currently listed at a fair price, and will you be able to sell it at, or above, what you paid for it?
Quite a few factors go into determining the resale value of a home. At the end of the day, a home is only worth what someone is willing to pay for it, which can lead to variability in price. Here are some guidelines to keep in mind:
Bedrooms
Perhaps you are a single person who only needs a bedroom and an office, but the majority of home buyers are looking for at least three bedrooms. This leaves room for the master bedroom, and office/guest bedroom and another bedroom in the instance that a couple wants children.
Location
This is pivotal. Busy streets, perceived “bad” neighborhoods, or being near foul-smelling facilities (landfills, factories, water treatment plants, etc.) can drive down the resale value of a home.
Updates
These can range from low-cost (replacing doors, trim, paint, and countertops) to high-cost (expansion of rooms, additions, or complete remodels) renovations. Many buyers want a home to be move-in-ready, so any update helps.
Comparable Homes
What are homes selling for in the area with similar condition and layout? Check to see if the value of homes have increased or decreased over the years.
Investing in real estate can be tricky. If working alone, you run the risk of being blindsided by issues you are inexperienced with, such as radon, termites, inspections, flood plains, and more. If a house seems to be well below what it is worth, there is a reason. It could be because of foreclosure, or it could be something much worse.
Find Real Estate Professionals That Can Help
In any case, call a professional. TalkLocal can find a real estate agent in your area that can determine resale value of a home. Our service is absolutely free. Real estate is too much of an investment not to protect yourself.
