These Factors Affect Your Home's Resale Value
Even if you didn't buy your home with the thought of reselling it, you might wish to sell it if your circumstances change. Maybe your family has grown, or your job requires a permanent relocation. Below are factors that will determine your home's resale value if that time comes.
Maintenance
Your home's current condition determines how much you can sell it for. The property's condition largely depends on how well you have maintained it. Prospective buyers will want to see that:
- The roof is structurally sound
- The heating, ventilation, and air conditioning (HVAC) system works
- The home does not have pest damage
- The drainage system works efficiently
Prospective buyers will know your house's condition when they view it. Discerning buyers will also hire property inspectors to reveal more about the house. Even the property's listing description will shed light on its condition.
Neighborhood Changes
Location or neighborhood factors determine property prices, so the changes your neighborhood has experienced since you bought the home matter. For example, your property's price may increase if your home has become safer, more walkable, and cleaner. Improvement of neighborhood structures, facilities, and services, such as roads, also helps.
Buyers typically learn about neighborhood factors through research. For example, crime statistics are available on law enforcement websites and can help buyers assess location safety and security. Real estate agents also help buyers research neighborhoods.
Age
All houses experience wear and tear. The wear and tear rate depends on factors, such as maintenance, climate, and material. Age might not be a big factor for relatively new houses. However, age matters considerably for decades-old houses. Newer houses tend to hold more value because they usually:
- Feature energy-efficient designs and materials
- Have materials with minimal wear and tear
- Comply with the latest building codes
- Feature systems or appliances that can still last many years
Buyers can consult your property's title, tax, and local county records (registry of deeds) to know its age.
Market Trends
Market trends dictate property prices because it determines what buyers want. Say you bought a home when open-plan kitchens were in style, but current buyers prefer closed kitchens. In such a case, your house's arrangement will affect how much it attracts buyers.
Economy
The economy, both local and national, is one of the biggest factors that determine property prices. The economy determines property prices, the number of new homes coming into the market, and the number of people with enough money to buy homes. Thus, your home's value might increase if the economy has tremendously improved since you bought the house.
Contact a real estate agency to find out more.
