We are a generation of smart home buyers in that we buy not just with home ownership in mind.
In fact, more and more homebuyers (first timers and veterans alike) are acquiring homes with great future reselling value. This is why house and land packages in Brisbane and its communities: Fernbrooke Ridge, Springfield Rise or Yarrabilba among other suburbs in Australia are a such a big hit among property investors.
However, establishing a home’s value can be a complicated and multifaceted process. Do home renovations really pay off? Let’s see the factors that influence your home’s value.
Location. Location. Location. This classic real estate refrain rings truer than ever. This factor includes the price of adjacent transactions, the quality of local facilities and whether the area has a good sense of community. Buyers increasingly focus on the value of community where they’re buying. Buyers now look for better communities, as well as the near establishments, recreations, and the prospective neighbours.
Upgrades. Home improvement plays a huge role in a home’s value. However, homes with over improved facilities, when compared to other properties in the neighbourhood, can actually hurt its value. You want to be common for the subdivision or community. It’s worth visiting your neighbour’s home or an open-house to see what people markets before you undertake any improvement. You may also hire an appraiser to prepare a feasibility analysis that should help you determine the impact of any renovation you want for your home.
Age and condition. Well-maintained historic homes and modern homes are generally more valuable than homes built somewhere in the middle. Typically, as homes get older, they become less valuable. Then, after a while, at some point, homes become a bit ancient that their historical value boosts its value. For instance, a home built in 1910 can be more valuable than a home built in 1970.
Size and layout. While most buyers swoon over ample square footage of a property, many became bored of the McMansion. Large houses innately need more upkeep, and there’s a lot more involved with taking care of the huge floor space.
The layout is a vital factor since an open-concept design can look more spacious that a boxy space with the same size. More room in the home also means higher value of a home. However, tiny rooms can have a negative effect, since buyers may prefer larger bedrooms.
Recent events. If your home has experienced fires, flood, or similar catastrophic events or has issues like mould or termites, it will be harder to sell – and command a lower price in the market. These days, people are very concerned if there was mould, fire, or even if there were some crime or death on the property. Most States require the disclosure of all known lead-based paints, but this varies depending on the location.
It goes without saying that property buyers will pay a premium price for the good location, upgrades of the facility, condition of the house, and its history. Even a first-time homeowner will be able to recognise these factors from the get go. Therefore, when buying a property for possible future reselling, always put these factors into consideration.