Buy for resale value
People buy homes for a variety of reasons. Regardless of the reason to buy a home, it is worthwhile to consider what its resale value will be even if you have no intention of selling it in the future; just in case.
The article, “Buying a Home With Resale Value,” listed on realestateabc.com, explains that investing in a home with the potential for a high resale value should be acknowledged by every potential home owner.
There are five factors that can determine the potential for a home’s resale value.
The first and most obvious factor is location. We have all heard or seen the quotation that “location, location, location” is what makes a smart real estate investment. This pertains to not only geographical location, but also location in relevance to community and economic ties.
“When choosing a community for your purchase, it makes the most sense to buy in a city with a viable and stable economy. Five, ten, or even fifteen years from now – when you want to sell your home – you can have a reasonable expectation that your community will still be a desirable place to live.”
A decent amount of commercial and business districts also contributes to the economy by providing jobs to local residents adding “an income source that the city can use to upgrade and maintain roads and city services.”
Another contributor to resale value is the proximity and condition of government services. Make sure that the public library is not too old and out-dated, or that it has at least been remodeled.
“You should also look into local crime statistics and see how the city compares to the national average and other local communities. Is the police force effective and responsive to community needs? Are fire stations located strategically around the community so that they also can respond quickly in an emergency?”
“Another area of inquiry is community services. Does the city sponsor youth sports and have well maintained athletic facilities and parks? Do they sponsor community events, such as an annual parade? Are there activities available for children, teenagers and senior citizens?”
Regardless of whether you have or plan to have children or not, you should have knowledge of the local school system. Is it overcrowded? Are there more schools planned for the future to support the growing number of kids? How are their standardized test scores? You can find out this information via the Internet or through calling the offices listed in the telephone book.
The final factor that can contribute to the resale value of your home is property taxes. “Property taxes may be higher in one town than another nearby city. This can sometimes affect whether potential homebuyers view a community as a desirable place to live. Often, they will choose not to purchase in a community with higher taxes, though this decision is not always justified. Higher property taxes often mean newer and more modern schools, well-maintained roads, and bountiful community services.”
Even though the thought of your home’s resale value will not be a priority in your thought process before you buy a home, it is something that you will want to consider.
