For most people, their home is their single most valuable possession. As a result, if your home increases in value, it means a significant increase in personal wealth. Whether you plan to hold onto your home or sell it sometime in the future, a more valuable home has the power to make you far more financially comfortable. However making sure that a home will increase in value is much easier said than done, given that homes are susceptible to the cycle of ups and downs in the real estate market. For this reason, it’s important you know how to buy a home that gains value.
A good location is one of the most common pieces of advice when trying to determine how to buy a home. Generally speaking, the better the access that a home has to amenities such as schools, shopping opportunities, public transportation, entertainment venues, and other recreational facilities, the more valuable it becomes. However be sure to consider upcoming changes in access to amenities. For example, if a shopping mall is going to open in the near future, it's likely that the surrounding neighborhoods will become more valuable in response.
Buy Low, Sell High
When you buy a home that sits in the lower price range of the neighborhood, there is more room for it to increase in value over time. If the home is less valuable because it is not finished with high end appliances and decor, something as simple as new floors and new counter-tops can produce an increase in value big enough to offset their costs.
Pay particularly close attention to the potential of the home's exterior since landscaping tends to provide outstanding value relative to its cost. This is because a home's curb appeal sets the first impression, which has an enormous impact on how would-be homeowners see the home.
Budget Friendly Fixes
High impact rooms like bedrooms, bathrooms, and the kitchen, should be given more care and consideration since these are the rooms that see the most use. Better still, renovating these rooms doesn't have to be expensive. For example, a fresh coat of paint, some new hardware, and some new curtains can make the kitchen seem in much better shape while keeping the budget low. Likewise, caulking the bathtub and re-grouting the floor tiles can make the bathroom look pristine without breaking the budget in the process.
Note that while a home doesn't have to be in pristine condition, too much damage and deterioration can make it not worth the costs of repair and renovation. As a result, be sure to arrange for a home inspection, which will search out all of the problems that can undermine a home with potential.
Hire a Real Estate Agent
If you want to know more tips on how to buy a home that gains value, hiring a real estate agent with good negotiating skills can make buying a home much easier. With good negotiating skills, a real estate agent will help you spend less on the initial purchase and help you free up funds for renovations. This helps for its value to increase once its repair and renovations begin taking effect.
For more information on how to buy a home that will increase in value over time, contact the real estate experts at Mary Roy and Team today!