If you’ve been thinking about moving up or downsizing, now is a great time to do so. Home sales are rising across the nation, and according to the National Association of Realtors (NAR), the average property spends 32 days on the market—the shortest time since the NAR began tracking this data point in 2011. In many geographic markets, homes are selling even faster, especially when they’re well-maintained and priced just right. Before you begin calculating how much your home may be worth to prospective buyers, consider these factors that could affect your resale value.
We’re not just talking about the city in which your home is located but the actual geography that surrounds it. Is the backyard adjacent to a busy highway? Does the master bedroom have a beautiful mountain view? Is it situated on a quiet cul-de-sac or in the middle of a noisy mixed-use zone? Even two identical homes in different locations will almost always have different resale values because of details like these.
2. Renovations (or lack thereof)
Maybe you enjoy cooking so much you elected to demo your old kitchen and dining room to create one large restaurant-grade workspace. Or perhaps you’re not into decorating and are still living with the original bathroom fixtures, paint colors and flooring that were there when you purchased your home in the 1970s. Renovations—or the lack thereof—can do a lot to your resale value. Making big modifications that only appeal to one particular taste can be just as detrimental as failing to update anything at all.
You probably already know that if you live in a high crime area, your resale value will suffer. But are you aware that homes in good neighborhoods that were once considered bad may still be negatively affected by the area’s reputation? The same goes for local schools. If your home is in a district that includes schools with great ratings, your property values will be higher. If schools in the surrounding area have a poor reputation, your resale value will be lower.
4. Bedrooms and Bathrooms
One of the first factors any homebuyer considers when looking at a property is the number of bedrooms and bathrooms included. Even couples without children tend to prefer homes with at least two bedrooms and bathrooms—and large families need even more. For this reason, adding a bathroom is generally a renovation that will improve your resale value. On the other hand, combine two bedrooms into one large one and you may actually reduce the value of your home.
5. Neighboring Houses
You can own the largest, most beautiful, well-maintained property on the block but if the homes surrounding yours are in disrepair, outdated or significantly smaller, your property value will take a hit as a result. Not only do neighboring houses with poor curb appeal tend to drive away buyers, they also have a negative effect on the comps—or comparable sale prices—appraisers consider when calculating the value of your property. Even if a buyer agrees to pay your asking price, his or her mortgage company is not going to extend a loan for more than what the appraiser determines your home is worth.
Source: Ghost Post Text by Angela Rose , Photo by Ugis Riba/Shutterstock.com