If you are like most buyers, you probably have a wish list of things you’d like to have in your next home. An important feature for that list should be “ how salable will the home be when you decide to sell it later?”
Resale value is something that is generally dealt with indirectly. Most buyers
- · Want a home they can buy at market value or less.
- · Want to buy a home that will retain its value.
- · Want to buy a home that will suit their needs.
- · Want to buy a home they can make their own.
If a listing is priced low to sell fast, might be because of an incurable defect, such as being in a location on a busy street.
There’s nothing wrong with buying a home on a busy street as long as
- · you buy it at a price that reflects the location issue
- · you know that it will suit your long-term needs
- · you understand that you will probably have to discount the price when you sell.
In an appreciating market as in 2005 (known as a seller’s market), buyers were desperate to buy and would often overpay, overlook defects that they might shun in a depreciating market (known as a buyer market).
Since the housing recession which began 5 years ago, resale values have become a bigger issue. Homebuyers are more cautious in their home buying decisions.
- · They don’t want to buy just any home
- · They don’t want to make a mistake
- · They don’t want to move in a slow market in which they might lose money.
The homes that appeal to a broad cross section of buyers hold their resale value well. Features should include:
- · A good floor plan that works for different lifestyles
- · Have a good amount of space and inexpensive to maintain
- · Exhibit a pride of ownership
- · Be in good condition.
- · Have a good location conveniently located to shopping, dining and entertainment
- · And last but not least be priced right for the market.
In a sellers market, homes might sell within a day or two. In a buyers market, the average time to sell a home is months and sometimes years.
Ideally, you want to buy a home that has good resale value and not one that’s just a good deal or to just take advantage of record-low interest rates. By all means, you shouldn’t buy a home that won’t work for you long term just to lock in a great interest rate.
There are many homes for sale on the market but in many markets there is a not a surplus of quality inventory. One reason is that many sellers are waiting for a better time to sell. Another reason is that homes with good resale value don’t tend to change hands that often.
Some predict that sellers who have been waiting for a better time to sell may decide they’ve waited long enough and list their homes for sale in 2012.
Here’s to happy Home Buying