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Buying a Home With Resale Value - the House
Buying a Home With a View
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.
Lot and Landscaping
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.
House Size
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.
Bedrooms and Bathrooms
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.
Closets, Garages and Laundry
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.
The Kitchen
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.
Fireplaces
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
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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