Buying at a low price does have a downside

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

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