Buying a Home with
Resale Value - the House
Homes with a
pleasant view of the horizon often sell at a premium above similar
homes without the view. However, if a view is important to you, buy
it mostly for your own pleasure and not as an investment. Though you
may place a considerable dollar value on the view, future buyers may
not be so like-minded. It may take you longer to find a buyer when
it comes time to resell the house. Or you may end up dropping your
price to more nearly match other sales prices in the neighborhood.
In short, if you
are buying a house with a view, try to pay as little extra as
possible. Otherwise, you might not get your money back.
Even though most
real estate value is usually concentrated in the building, the lot
is important, too. Obviously, it should be as level as possible.
Assuming the property is in a typical neighborhood, the lot should
be rectangular – no odd shaped lots or oddly situated lots.
Yard sizes are
smaller in modern homes than in older homes, but there should still
be a decently sized front and back yard. Do not buy a house where
the entire back yard is taken up by a swimming pool, for example.
Do not purchase
an over-landscaped property, either. You would normally pay a
premium for that, which you may not be able to recover when you
sell. You will get your best value if the house is moderately
landscaped or under-landscaped for the area. You can always improve
the landscaping during your ownership by improving the grass and
adding bushes and trees. Just do not spend too much.
In each
residential neighborhood, houses will vary in size and rooms, but
they should not be too different. If resale value is an important
consideration, you should not buy the largest model in the
neighborhood. When determining market value, the homes nearest to
yours are most important. If most of the nearby houses are smaller
than your house, they can act as a drag on appreciation.
On the other
hand, if you buy a small or medium house for the neighborhood, the
larger homes can help pull up your value. This is one of those times
where determining your "wants" versus your "needs" can be extremely
important. Buying what you need in
a more prestigious neighborhood may provide more financial reward
than getting what you want in a
less desirable neighborhood.
Three and four
bedroom houses are the most popular among homebuyers, so if you can
stick in that range you will have more potential buyers when it
comes time to resell. Five is okay, too, as long as you do not have
to pay too much extra for the additional bedroom.
There should
always be at least two bathrooms in a house, preferably at least two
and a half. One bathroom with a place to wash up for day-to-day
visitors, one for the master bedroom, and at least one to be shared
by the other bedrooms.
In Texas,
two-story homes with the master bedroom downstairs tends to be more
desirable. If you have a master bedroom upstairs, you may have
buyers unwilling to purchase your home for this very reason.
Walk-in closets
are extremely desirable for the master bedroom. For the rest of the
house, just be sure there is plenty of closet space. Don’t forget
space for linens and towels.
Garages add to
the resale value and you should always make sure to get at least a
two-car garage. Lately, three-car garages have become desirable in
some areas of the country.
The laundry
facilities should be located somewhere convenient on the main floor
of the house, but not in a place it will create an eyesore. Think
about whether you want to walk up and down stairs when carrying
loads of laundry.
Family activity
centers around the kitchen, so this is the most important room of
the house. Larger kitchens are better, and they should be provided
with modern appliances. Obviously, the dining room and breakfast
nook should be located adjacent to the kitchen. In newer houses, the
family room should also be extremely close to the kitchen.
There should be
easy access to the back yard, as there will be occasions for
barbecues and outdoor entertaining. In addition, it should be a
short trek between the garage to the kitchen so hauling groceries in
from the car does not become a horrendous chore.
The only room
where you absolutely have to have a fireplace is the family room. A
fireplace in the living room may be nice, but you pay extra for it
and will probably rarely use it. At best, it serves as a focal point
of the living room, but does not add much in real value.
Swimming pools do
not provide as much added value as they once did. Safety issues
about families with younger children have become more publicized
than in the past, so families with small children tend to avoid
homes with pools. As a result, having a pool may actually reduce the
number of potential homebuyers when you try to resell the home.
Buy a home with a
pool for your own enjoyment, not as an investment.
Since we are on
the subject of swimming pools, here is a word of advice: If you want
a pool, buy a home that already has a pool. Paying a contractor to
install one for you is like throwing money away. You will never get
a dollar-for-dollar return on your investment.
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Buying
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