There are never any guarantees in the real estate market, you simply analyze the trends and stats, and conclude with possibilities. There are many key factors that have a direct effect on your house. Its location, the number of bedrooms and bathrooms, the amount of livable space available, landscaping, the view, upgrades and improvements and, I’ve left the best for the last; resale value. It’s true that an upgraded and renovated house can bring in profit but this may not always be true. Remember, whenever an investor is interested in buying homes he’ll try to make his move depending on the level of depreciation in the market. So, you, as a seller must consider your house’s current market value before updating and remodeling it.
What is Resale Value?
At the time of buying a house, many people start stressing over the down-payment, the mortgage rates and property taxes, therefore forgetting about the most important thing, the resale value. When it’s time to sell, your house’s resale value is determined by prospective buyers. Initially, while buying a house, many focus on their desires, making sure that the property they invest in is suitable to their needs. At the end of the day, when you have to put your house on the market, whatever suited your needs and whatever your reasons were when it came to buying your house will not be considered anymore instead, the buyer will look into what suits him best and will determine if your house’s value appreciates. Here, is where prospective buyers will look at quantity and quality. The quantity being ample of space including storage space, family space, good open floor plans, more than two bedrooms and bathrooms, lots of closets and so on. And quality being recreational centres, schools nearby, businesses, shopping centres, etc. So, if you’re a newbie and are looking into buying a house, it the perfect time for you to think about selling it as well.
Location: The Key Factor to Consider
If you’ve read the previous articles or if you’ve even spoken to any qualified realtor in the business, LOCATION is what we’ll always put an emphasis on. It’s the one factor that could determine your profit or loss. You want to attract more buyers, and the best way to do it by finding a house that has a good neighborhood has basic amenities available, is closer to schools, hospitals, businesses, recreational centers, shopping centers and has a proper and well-maintained transportation system. For example, you buy your dream house that is a few miles out of town and you’ve paid quite a mint for it as well, but, you didn’t think about its sale value. The issue with this kind of properties is that without renovation, their values will either remain stagnant, depreciates or will slightly increase, and that’s about it. You’ll barely be able to make any profit off them. So, you need to consider a real estate market appreciation value before you renovate.
Smallest May Be Best When it Comes To Resale
Honestly, the smaller the house, the less risk you’ll be taking when you put up your home for sale. In this age, what with Millenials busy with moving and traveling, smaller houses are more feasible and cost-effective. Which is why you’ll come across a seller’s market with there being a high demand for smaller houses. Small houses are more ideal if you’re one of those investors who’d like to buy and sell. The best part about small houses is that, at the time of renovation, it’s easier to remodel and upgrade, with there being fewer expenses.
Think about it, the bigger a house, the larger the roofs and rooms are and, the greater the costs when it comes to renovating. However, again I’d urge you to consider resale value before remodeling or renovation, if there’s a margin for profit, then go on ahead and renovate but if you feel like you’ll lose more than you’ll be putting in then, step back and reassess. You might come across a house that was just made for you and it might have certain features that’ll make it hard to sell. It doesn’t mean that you should walk away from the deal. If you are committed to buying it and are well aware of the difficulties you might face at the time of selling, go ahead and make the move. It just means that you’ll need to have a better marketing strategy so that it’s resale value does not end up disappointing you or your bank account.