How to Buy a Home With Good Resale Value (2024)

FAQs

How to Buy a Home With Good Resale Value? ›

The most important factor in good resale value is location, so choose a home in a desirable location to increase your pool of future buyers. Other factors in resale value include number of bedrooms and bathrooms, family space, walk-in closets, and an open floor plan.

Colonial. Colonial-style homes have the highest resale factor when all other elements are equal. These two-story homes that often have a boxlike appearance are popular because of the amount of functional living space that they often have. Many homeowners also prefer their minimalistic design.

Your first objective is to buy a home that's right for you, but do consider its resale value before you make the final decision, especially if you know you'll move again within three to five years. A careful purchase now will help give you extra funds to move up with the next time you buy a home.

1. The Location. They say the three most important things to think about when buying a home are location, location, location. You can change almost everything else, but you can't change your home's location.

The One-Percent Rule

It's a tool that you can use to determine if a property deserves a closer look. All the one-percent rule says is that a property should rent for one-percent or more of its total upfront cost. For example: A property that costs $100,000 should rent for at least $1,000 per month.

According to recent data, the house size that sells much faster than other homes is 1,500 and 2,000 square feet. Most notably, smaller houses tend to sit on the market for a shorter time than larger homes.

The resale value of a car is a projection of its market value. Model type, age, and condition are primary factors determining market value, with mileage, rarity, and equipment levels also contributing.

Should I avoid big purchases before buying a house? ›

Although a “large purchase” will vary based on your budget, consider avoiding any purchases that you need to finance. Even if you can make the purchase in cash, it's good to hold off until after closing. Otherwise, the purchase will affect your cash reserves.

If the demand for the stock is more, i.e number of buyers of a stock than the number of sellers of a stock then the stock price goes up. And if the number of sellers is more than the buyers then the stock price goes down as the demand is less and supply is more.

Bottom line, selling and buying a home are both stressful, but selling takes the crown. As for sellers, eventually you will get through the process and sell your home just fine. A few weeks or months of hard work and inconvenience will pay off and you'll happily move on to the next chapter in your life.

So the short answer to “does new flooring increase home value?” is yes—if you're smart about your selections. The right upgrades also make your house move faster on the market. Follow these 5 pro tips to get the most out of this wise home investment.

But will painting your house increase the value? Yes, it can absolutely affect your resale value! Online real estate giant, Zillow, has conducted paint color analyses like this one over the past few years to determine which exterior and interior paint colors add the most value to your home during resale.

Changes in the real estate market can lower the value of your home. Natural disasters and climate change can lower your property value because the property is a greater risk to purchase. Foreclosures in your neighborhood can also drive down property value.

If you haven't renovated your home in the past 30 years or so, it won't show well when you put it on the market. In other words, it won't get the same price as a similar home that's been maintained and updated.

Supply and demand. The basic law of supply and demand have a major effect on the housing market. Simply put, as the housing supply decreases or as demand rises, creating an inventory shortage, home values go up. A real estate inventory shortage means that there are fewer sellers than there are buyers.

Maximum value will be added by improving the main living spaces, such as the kitchen, dining and living area and the way in which they work together. Before removing walls, work out which are loadbearing by checking the direction of the floor joists as these should always rest on structural walls.

Why do buyers offer more than asking price? ›

Making an offer above the asking price is a common trend in the California real estate market in 2021. It's largely driven by a stark imbalance between housing supply and demand. Home buyers are making aggressive offers in order to succeed in a highly competitive market.

THE 4-3-2-1 APPROACH

This ratio allocates 40% of your income towards expenses, 30% towards housing, 20% towards savings and investments and 10% towards insurance.

The 1% rule of real estate investing measures the price of the investment property against the gross income it will generate. For a potential investment to pass the 1% rule, its monthly rent must be equal to or no less than 1% of the purchase price.

Real estate expert opinion is generally against the idea of paying more than than a property's appraised value. Even if you make up the difference on an under-appraised property, you'll have a property worth less than what you paid.

If less than 20% of your income goes to pay down debt, a home that is around 4 times your income may be suitable. If more than 20% of your monthly income goes to pay down existing debts in the household, dial the purchase price to 3 times.

The price is right

Lower-priced starter homes are winning most buyers' hearts. Homes listed at between $200,000 and $250,000 were sold in 83 days on average, significantly faster than in any other price range. And of course the more expensive the home, the fewer buyers can afford it.

Sometimes the hardest part about buying a home isn't finding it, it's getting it. That means there are too few homes and too many people needing a place to live. That means there are more buyers than sellers. That gives sellers the advantage, meaning it's a Seller's Market.

Many resellers create a sliding-condition scale for pricing items. In perfect condition, items are priced at 70 percent of new cost, while items that are still saleable, but past their glory days, are priced at 30 percent of new cost. Some products also retain value better than others.

This means that location is often the single most important driving force behind the value of a property. It's a simple case of supply and demand: Housing supply in great locations is limited by the number of homes in that location.

What is an example of resale value? ›

So, a car with an MSRP of $30,000 and a residual value of 50% after three years would be worth $15,000 at the end of its lease. Resale value is a similar concept, but it refers to a car that has been purchased, rather than leased.

How many times to look at a house before buying? Ideally, four to six viewings should be sufficient. Attending two to three visits inside, with a realtor and/or appraiser, and another two to three visits scouting the house and neighborhood independently, from the outside, may be a good approach.

Higher Property Taxes and Bills

Not only will you end up paying a lot towards property taxes, you'll also see an increase in homeowners' insurance costs, utilities and repair and maintenance fees. No matter how much money you have at the moment, you have to be smart about your financial future.

The answer is often “no.” Conventional wisdom might suggest that during negotiations, especially in a multiple-offer situation, the buyer who throws the most money at the seller will snag the house. In reality, however, it doesn't always end up that way.

No, the seller is under no obligation to accept any offer. And if the market is a strong seller's market, they are likely to wait for offers that are above asking price. Can a seller counter a “highest and best” offer? Yes, the seller can counter at any time during the negotiation process.

The difference between the 'buy' and 'sell' prices is the commission you'll pay to the broker or intermediary body who executes your trade - called the 'spread'. Buyers and sellers might theoretically be connected electronically. But, as long as the trades are handled by humans, they must be compensated in some way.

Working through your feelings early will make the selling process smoother, but even if you spent time grieving before putting your home on the market, it's still normal to feel some pangs of sadness during closing. While it's easy to tell yourself you're overreacting, getting past remorse isn't a simple process.

Selling a home brings about a wave of different emotions. There is excitement in a fresh start, but there may also be sadness in leaving a home you've loved for years. There is anticipation as offers roll in, but there can be stress if the transaction hits a roadblock.

What color flooring has the best resale value? ›

Dark hardwood flooring is in style. It makes your home easier to sell and also boosts your home's resale value. Shows off the furniture in the room. Dark hardwood floors have a way of contrasting with lighter colored furnishings.

It's a smart idea; hardwood flooring is preferred by home buyers and renters across the United States so it could improve the resale value of your home when it comes time to sell.. But consider all your options carefully. Here's more about flooring made from hardwood and why you might prefer it to wall-to-wall carpet.

“Buyers like carpet in bedrooms, especially in basem*nt bedrooms, for comfort and warmth.” Carpet is also much quieter to walk on than other types of flooring and can help absorb noise. It can mask sounds, such as footsteps and squeaky floors, Fisher adds.

"Generally, going with neutral colors like shades of white, beige, taupe, and grays lead to a faster sale," she shares. "Neutral colors are also more appealing to potential buyers because many want the creative freedom of a blank canvas to add their personal touches to when looking for a new place to call home.

Not only will greige give your home a warm, elevated look; it will increase its value, too. "Painting your living room a neutral color like gray, beige, or light brown can add up to $2,000 to your home's value, which can be modernized with accents of white," says Bailey Carson, home care expert at Angi.

Most homes need to be painted every 7 to 10 years, but the actual timeframe varies by material and region. For example, cement fiberboard siding needs repainting every 10 to 15 years, but more traditional cladding needs painting more often.

A home's value is affected by local real estate trends, the housing market, the home's condition, age, location and property size.

In 2023, the national annual median price for homes for sale is projected to rise by another 5.4%, which is less than half the pace seen in 2022. Even if a homeowner decides to sell their home, they will likely have a lot of equity in it.

Permanently converting a bedroom into anything else, is never a good idea and could devalue your property by as much as 10%. That means converting it to a dressing room/closet, TV/Media room or home office.

One reason commercial properties are considered one of the best types of real estate investments is the potential for higher cash flow. Investors who opt for commercial properties may find they represent higher income potential, longer leases, and lower vacancy rates than other forms of real estate.

Which properties make the most money? ›

What Types of Commercial Properties Are the Most Profitable? High-Tenant Properties – Typically, properties with a high number of tenants will give the best return on investment. These properties include RVs, self-storage, apartment complexes, and office spaces.

A home with three bedrooms or more is often a better choice to ensure future resale value. More than one bathroom (including a master bathroom): Buyers will still buy a one-bath home but at a much lower price than expected.

Commercial real estate is known to yield higher returns than residential real estate. If you can afford to manage a commercial space, it can prove lucrative over time, depending on your area.

Fee simple is the highest form of ownership — it means the land is owned outright, without any limitations or restrictions other than local zoning ordinances.

Federal tax benefits

Because of the many tax benefits, real estate investors often end up paying less taxes overall even as they are bringing in more income. This is why many millionaires invest in real estate. Not only does it make you money, but it allows you to keep a lot more of the money you make.

A new report found that New York City is the no. 1 place for ultra-high-net-worth individuals to own a property. New York City isn't just the city that never sleeps. It's also the most popular place in the country for the 'super-rich.

Typically, a lowball offer is considered to be at least 20% below the asking price. If you're offering 10% below, the property should be in a good condition but may just need some cosmetic work done. The goal of offering 10% below the asking price is to use those extra funds to cover the repairs.

If you're a seller with a tight timeline (and budget), you'll want to focus on these rooms first. The rooms buyers most closely inspect (and judge) in a house are the kitchen and master bath. These are the interior spaces where the most value can be added during a sale, so they need to look their best.

They also say the ideal number of bathrooms is one less than the number of bedrooms. Using that tip in our scenario above, we're up to three bathrooms. Even if the master bedroom has an en-suite bathroom, the three other bedrooms will still have two bathrooms to share.