Real estate can be more than just a home, it can be a great investment that appreciates in value over time.
But how can you predict how your home’s value will change over time? Here are four factors that could affect your home’s resale value:
Location, location, location
It’s the ubiquitous mantra about real estate. A home’s location can be a major factor when it comes to resale, and there are a number of points that can affect it.
Buyers will often be looking for a neighborhood that’s close to amenities, shops and restaurants, but is also low-traffic at the same time.
Being close to good schools can also be a big selling point for families with young children.
Having a view at something scenic like a mountain, valley, city skyline or body of water can also give a resale value a boost. There’s a reason people talk about “million-dollar views.”
Being located in a neighborhood with an HOA can also be beneficial. While HOA rules can sometimes feel restrictive, they also mean the neighbors won’t be doing anything too obnoxious with their properties to bother you.
A house that looks beat up from the street is going to turn off a lot of buyers before they ever set a foot inside, if they bother to at all.
A well-kept yard and garden can also help draw in buyers. Hopefully they won’t think about how much work it takes to maintain them. And outdoor living space can give buyers dreams of all the entertaining they could do while living there.
Garages can also add to resale value. According to real estate firm Redfin, homes with garages sell for 12 percent more than homes without garages.
Everything’s in good working order
Nobody wants to get stuck with a so-called “money pit.” So having a home’s systems in working order will always be good for resale.
Many buyers will want to know how recently items like the HVAC, water heater and electric have been replaced.
Having a re-done roof and updated windows can also be a boon for resale value.
The floor plan
As much as you may love your sunken living room or your modern spiral staircase, many buyers will be looking for a very typical home.
An open floorplan or open-concept kitchen typically boosts home value as they’re family-friendly.
More bedrooms are always a plus. So are bathrooms, especially if they have child-friendly tubs.
Updated bathrooms and kitchens also help. They can play a big role in making a home look much newer than it really is.
Of course, there are lots of other items that can affect resale value. When real estate website Zillow estimates, or “Zestimates,” home values, it takes into account factors like square footage, the number of bathrooms, features like hardwood floors and granite countertops, comparable homes nearby, tax assessments and prior sales.