When looking at homes for sale, people have various considerations. For most, it’s how the home suits their needs and budget. However, many tend to forget that resale value is just as important an aspect to keep in mind.
Thinking about the possible returns in your property investment this early in the process may seem like you’re looking too far into the future. However, it’s good practice to be prepared for the eventuality.
Keep in mind the following factors that affect the resale value of a home.
Location
When buying a new house, you must prioritize the location – accessibility, proximity to amenities, neighborhood safety and security, and great views. Just like you, other buyers will also want a desirable location. So, if your new home’s location does tick off all the boxes in your locale desirability checklist, chances are you’ll attract a large buyer pool come resale time.
The Central New Jersey real estate market offers a wide variety of properties for different buyer profiles at varying price points. Take homes for sale in Marlboro, NJ, for example. The town has a low crime risk and interesting historic buildings along Main Street and in the town center. This makes the location suitable for families with children. Its proximity to the Jersey Shore also makes it attractive to investors and those looking for vacation homes.
Historical Pricing Data
What is the house’s current list price? Compare it with its past sale prices. The home’s tax records will also show you its sales history, where you will see if its value has increased for every sale.
Local Market
A good time to buy a property is when the local market is currently a buyer’s market. This is when supply is higher than demand, thus allowing you to negotiate for a lower asking price. Then, when it’s time to resell your home, wait for the local market to become a seller’s market when demand is higher than the supply. That way, you can dictate a higher price than the average market value.
While it’s impossible to predict what the future of the real estate market will look like, your broker can provide you with local market information that will help you in making plans and strategies.
Size
Small and minimalist houses are the usual trend in urban locations. On the other hand, you’ll find larger homes in the suburbs. But since trends continuously change, always keep up-to-date with the latest local information, which your local broker can help you with.
Age and Condition
New construction will always be preferred. The concern some buyers have with older homes is the potential maintenance costs that come with it. But it doesn’t mean that older homes are always less desirable. “Antique” homes have more value in historic locations.
No matter the age of the home, it can still generate a good resale value as long as it is kept in good condition. You could buy an older home if you’re willing to invest in maintenance, updates, and upgrades that will increase the resale value of your home.
Work with a trusted broker who’s an expert in the location where you’re looking to buy. Top-notch Realtor Colleen Meyler is experienced and knowledgeable about the Little Silver, NJ, real estate market, as well as the rest of the Central New Jersey residential real estate market. Get in touch with her at 732.995.5102 or at ColleenMeyler(at)gmail(dotted)com .