Contents
- What is a home’s resale value?
- How do you know if a home has good resale value?
- The home is situated in a sought-after location
- The schools are well-regarded
- The curb appeal is there
- The floor plan works for a broad pool of buyers
- The neighborhood is considered safe and quiet
- What are the red flags that a home doesn’t have good resale value?
- Moving soon?
How Do You Know If a Home Has Good Resale Value?
Before you purchase a home, make sure to consider its resale value. Unless you plan to live in the house for the rest of your life, it’s important to have a firm understanding of a property’s resale potential before submitting an offer to the seller. After all, a house is one of the most significant financial and personal investments you’ll ever make. As such, it’s important that the home appeals to buyers later down the road. In general, a home with good resale value is typically a good investment, while a home with bad resale value may not be worth your time or money. So how do you know if a home has good resale value? Here’s our guide to understanding the resale value of a home.
What is a home’s resale value?
A home’s resale value is its estimated worth in the future. Bankrate.com defines a home’s resale value as “the amount it is expected to sell for at some point in the future. Many things, including any improvements made to the property and the overall age and condition of the home, can affect the resale value.”
How do you know if a home has good resale value?
Even though you can’t always predict the future (or housing market volatility), you can predict a number of factors that will most certainly play into a home’s resale value. Here are five indicators that a home has good resale value.
The home is situated in a sought-after location
The schools are well-regarded
The curb appeal is there
The floor plan works for a broad pool of buyers
The neighborhood is considered safe and quiet
What are the red flags that a home doesn’t have good resale value?
Not sure whether the home has good resale potential? Here are several red flags that indicate a home doesn’t have good resale value (i.e. might not be a good investment).
- It’s been on the market forever – How long has the home been on the market? A home without much resale value will typically take longer to sell. Perhaps it has a funky floor plan, too many stairs or is located in a less than desirable location. Whatever the reason, its long duration on the market is certainly a red flag that it might not be a good investment.
- It’s the most expensive (and over-priced) home on the block – Buying the most expensive home on the block is a big no-no for anyone concerned about resale value. Unfortunately, these pricey homes are less likely to appreciate in value due to nearby comps being considerably lower. In addition, it will be harder to find a buyer who is willing to overpay to be on a certain street when neighboring homes for sale are less expensive.
- The location is not great – Location is (almost) everything when it comes to resale value. For this reason, it’s especially important that you pay attention to any location red flags while shopping for a home. For instance, a nearby highway, bad schools, empty storefronts or neighbors with dilapidated yards may be a red flag that the location isn’t great for resale value.
- The home is in poor condition – If the home is in poor condition, then it likely doesn’t have good resale value. Buyers care about a home’s systems (think: HVAC, electrical and plumbing). These should be in good, working condition, otherwise, you’ll end up having to pay for expensive replacements. Other important features to pay attention to include the condition of the yard, roof, closets, garage and finishes. Keep in mind that if the home is in poor condition, you’ll end up having to spend money on a number of costly improvements, which could offset any sort of profit you do end up making when it comes time to sell.
Moving soon?
So, you’ve assessed a home’s resale potential and decided to purchase the property. Congrats! Once you’re ready to move, make sure to use Moving.com’s Move Planner, which includes printable moving checklists for every type of relocation. In addition, you can create a customized moving checklist to organize all of your different tasks by week for a successful move. To find a reliable moving company, you can also check Moving.com’s extensive network of movers. Our website makes it easy to find and book the best moving company for the job. All relocation companies in our network are licensed and insured, so you can rest assured that your move will be in good hands. Best of luck and happy moving!