Property Expert Nicholas Statman writes on how to get a good resale value for a property.
The day you purchase your primary residence, you’re usually not thinking about the day you’ll be selling it. However, the resale value of your home is one of the most important things to consider when investing in property. As you go through the buying process, it is essential to consider the profit you will make when you eventually turn around and sell it. There are a few key characteristics that will indicate whether or not a home has a good resale value or not. When you know these things and can look out for them, you set yourself up for success and increase your chances of maximizing your return.
A home with a good resale value will…
Be In A Convenient And Desirable Location
It is not an industry secret that location is one of the most important things to consider when investing in property. You may find a house that is beautiful, has all modern upgrades, and is in a price bracket that you can afford. But if it is not in an area where people want to live, you’ll start to lose money right away. A home with a good resale value will be located near good schools, in an area with low crime, and close to modern amenities and conveniences. Before you make an offer on a home in a seemingly desirable location, do a little digging. Are there any plans for building around the area that could impact the value of the home? While it is impossible to predict all future changes, you can do your due diligence by researching current plans that will affect the house and its value.
Look for investment properties in popular residential areas. This will increase your pool of qualified buyers and your chance of a quick and profitable sale.
Have More Than Two Bedrooms
It is important to remember that when buyers are looking at your home, they will be comparing it to other homes in the neighborhood. If your home has fewer bedrooms than other comparable properties on the market, you will immediately be at a disadvantage. Of course, if most of the homes in your area have two bedrooms, then a two-bedroom home is perfectly fine. As you search for a lucrative investment property, make sure you run a comparative market analysis. If your target market is families, two bedrooms typically will not be enough. Make sure the home you purchase matches up against the competition. If you are buying a two-bedroom house in a neighborhood full of two-bedroom homes, consider finding a way to add an extra bedroom. Doing this will significantly increase your appeal to interested buyers.
Have More Than One Bathroom
Having one bathroom is typically not a deal-breaker for buyers, but they do not expect to pay as much for a home with one bathroom then they would for a home with two. Smaller, more compact flats are popular options for singles and young professionals. In this case, one bathroom is all they need. However, a home with two bathrooms, especially a master bathroom, will have a significantly higher resale value than a home with just a single bathroom. According to the Nationwide House Price Index, having a second bathroom can add up to 5% on average to the value of your property.
Have Ample Storage And Closet Space
There is a reason that so many homebuyers peek into closets and storage spaces when buying a home. A lack of storage space or ample closets is not something that will go unnoticed with buyers. If the home you are purchasing does not already have spacious closets or convenient shelving, consider adding this as an upgrade. Buyers who value living in a clean and uncluttered space will appreciate any extra storage options that they have. Custom closets can also significantly increase your ROI and will be a game-changer for buyers who need a lot of extra storage space.
Have An Open-Concept Floor Plan
Most buyers are looking for a home that flows seamlessly from one room to the next. They want openness and smooth transitions, not closed off spaces and confusing layouts. Most newer homes are designed with a smooth and open concept design. The bedrooms are set apart from the main living areas, and the communal spaces blend into each other. Pay close attention to the layout and floor plan in older homes. If the kitchen is located far away from the front door, it could mean a cumbersome and time-consuming process to get groceries from the car into the home. Also, take into consideration the location of the garage. Because the garage is typically a very noisy place, having it set up against a bedroom may not be conducive to the lifestyle of the buyer. Imagine what everyday life would look like inside this house. If it seems like the layout would negatively impact the daily routine of the modern home buyer, it may hold a good resale value.
Be Fitted With Upgrades
The condition of the home when you buy it and when you sell it should not be the same. The home should receive upgrades and renovations to improve its form and function. You can do the upgrades yourself or hire a team of contractors to do it for you. Either way, modern home buyers are expecting certain renovations and upgrades for their new homes. Some home improvements that add the most value to a home include:
- Kitchen remodel
- Bathroom remodel
- Exterior improvements
- Basement remodel
- Addition of patio, deck or porch
- Replacement windows
For property investors, the day to think about selling a home is the day you buy a home. To maximize profits, it is important to look closely at an investment property and consider how each room and detail of the home will impact the resale value. No matter how long you plan on owning a particular property, it is important to keep in mind the aspects of the home that will help the property retain a good resale value.