How Do You Know If a Home Has Good Resale Value? - Moving.com (2024)

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 thehome, can affect theresale 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.

1. The home is situated in a sought-after location
   

   Location is the single most important factor when it comes to a home’s resale value. Purchasing a home in a good location ensures that your home will be a hot commodity when it hits the market in the future. This is also true for real estate located in an up-and-coming neighborhood, where home prices are on the rise. If you’re able to purchase a property and get in at the ground level, then you may be able to earn a pretty penny when it comes time to sell. As long as the location is continuing to improve and attract new buyers, your investment will likely pay off later down the road.

2. The schools are well-regarded
   

   Close proximity to highly-rated public schools and popular private schools is very important to a home’s resale value. Even if you don’t have children, you should pay attention to the quality of nearby schools. If the home is not zoned for quality schools, then you are most certainly limiting your buyer pool in the future. Families with school-age children will likely look elsewhere when it comes to time to purchase a home.

3. The curb appeal is there
   

   A home can have all the bells and whistles inside, but without at least some degree of curb appeal, it’s going to be difficult to sell the house later on. Of course, as long as the home has curb appeal potential (meaning: you’re able to improve it with a little landscaping and paint), then there’s no need to worry too much about the curb appeal’s future effect on resale value. On the other hand, if the exterior of the home has undesirable features that aren’t easy to remove, then you should think twice before purchasing the property.

4. The floor plan works for a broad pool of buyers
   

   Think long and hard about a home’s floor plan and its resale potential before purchasing the property. A few important features to note: 1) one-story homes have the greatest resale potential, thanks to a lack of stairs. Older buyers and those with physical limitations find one-story homes to be more well-suited to their needs. 2) Families with young children often find it’s easier to have all the bedrooms on the same floor. With this in mind, homes with a master bedroom on a separate floor may have trouble selling in certain markets. 3) Three-bedroom homes tend to attract more buyers than two-bedroom homes. 4) A somewhat open floor plan with a thoughtful and smart flow will appeal to the majority of buyers.

5. The neighborhood is considered safe and quiet
   

   Purchasing a home in a neighborhood with high crime rates will make it hard to recoup your investment down the line. A home with good resale value is typically one that is located on a safe and quiet street, away from the hustle and bustle. Here’s how to find out how safe the neighborhood is before buying a home.

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’sMove 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 ofmovers. 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!