Many things can affect your home’s resale value such as the overall condition and any improvements made to the property.
Your home’s resale value is how much you expect to receive if you sell the property in the future and it might not be the same as its current value. Your actions can move the price up or down.
Home Resale Value
A home’s resale value is determined by what kinds of features that future buyers will be looking for. It could be the location, accessibility, age, condition and its features, among many other things. It is important to note that not all upgrades will boost a home’s resale value as some could be too pricey or simply not valued by future owners. For example, turning a garage into a guest room might be convenient for you, but a garage is much more attractive in terms of a future sale.
Factors That Influence Your Home’s Resale Value
First, you need to keep in mind that every buyer is different, but there are some common factors that a lot of people look at when buying a house.
Location, location, location
Your home’s location could be perfect to you because it is near your parent’s house and close to work, but future owners might be interested in quality of local schools or proximity of shopping and recreational centers.
Price of comparable homes
Potential buyers look at prices of similar houses to assess their negotiating position. But besides doing the research, one must also remember that no two houses are the same and the differences need to be accounted for.
Size and usable space
Although a house’s value generally increases proportionally with space, the price buyers will pay per square foot can vary greatly. In addition to square footage, usable space matters when determining its value as attics, garage and even basement are generally not labeled as usable. On the other hand, the more bedrooms and bathrooms, the merrier the value.
Age and condition
Although newer homes tend to have a higher value due to newer plumbing, electrical system, the roof and appliances that are still under warranty, many buyers are willing to pay a premium if a home’s move-in-ready.
Upgrades
Just because newer homes are valued more does not mean that updated cannot make an older home more valuable. For example, adding a pool to a luxury house tends to increase its value whereas a kitchen remodel has the same effect for a less expensive home.
Last but not least, don’t forget to account for the economic factors such as the macroeconomic environment and rising interest rates that can result in less people being able to afford a house. If you do think of selling your house someday, make sure you evaluate when is the best time to do it.
How To Increase Your Homes Resale Value
Here are some universal tips on boosting your home’s resale value.
Make it beautiful
It is often said that curb appeal makes the sale and it’s logical that a house needs to be attractive and easy on the eyes. You shouldn’t go crazy and invest a lot of money just to make the perfect ‘stage’ for future sellers because as long as you know you’ll personally enjoy the changes, that’s a win either way. Surveys show that buyers appreciate beautiful living room, kitchen and master bedroom.
Make it efficient
Making energy-efficient upgrades to your home such as weatherizing it, adding another layer of insulation and installing solar panels will lower your home’s Dayton Power & Light expenses. Potential buyers will appreciate the fact they will be paying lower utility bills every month.
Make it smart
We live in an era of technology so use it to your advantage to make your home even more comfortable and convenient. A smart thermostat will keep you warm and cozy while saving you energy and money. Smart lighting system will make your space feel brighter, while also saving you money both from reduced electricity bills and from its longer lifespan. A smart lock means you never get to waste precious time looking for your keys, and so on. The smarter your home is, the better off and wealthier you’ll be.
Takeaway
It’s easier to avoid common mistakes when you’re aware of the factors that influence your home resale value. As a smart homeowner, you probably see your home as not only a place to do life, but also as one of the best ways to build wealth through home equity by selling your house for much more than what you paid for it.
