We’ve said it before, and we’ll say it again; purchasing a home is one of the biggest, most exciting, (sometimes) nerve-wracking, and life-altering decisions a person can make. When shopping for a home, our minds are always on the items that we want to check off our wish-list, as well as the qualities that grab our eyes when viewing a home. With all that said, it is also important to consider the resale value of a home. That may seem odd because why would you be thinking about selling a home before you’ve even decided which one you’ll buy? The short answer is because eventually, the house will be sold, and you’ll want to be sure that you’re not surprised if your home is considered unappealing or unsellable. Here are a few of our top tips for what to look for in a resale home.
One of the first tips is also one of the most important factors when home shopping: the home’s location. Researching neighbourhood schools, safety, accessibility of transit, and the community overall, will give you a good gauge into the appeal of the specific area. Don’t forget to investigate other home sales in the neighbourhood. Knowing how long homes are on the market before they sell will also indicate how much appeal the community may have. If you’re considering an area that is a high-rent district, that is something that would potentially be appealing for buyers and investors down the line. Your agent will also be able to give insight into the rent prices in the neighbourhood in which you’re shopping.
Home layout preferences differ from person to person, but that doesn’t mean that there are no trends in this area of real estate and design either. Some home layout trends are highly appealing to many buyers, such as a split plan home, the inclusion of a master suite, an open concept home, and the bed-bath ratio, which can change neighbourhood by neighbourhood. Your realtor will be able to give insight into those specifics.
Age of the Home
This is not surprising. Like you, a lot of prospective buyers will be considering the age of the home. Thinking about the overall lifespan of a home means thinking about what potential repairs might be on the horizon. So, when shopping for a home, be sure to take that into consideration not just for you and your family but from the perspective of reselling down the line.
Energy-efficient homes are becoming more and more popular with each passing day. This may very well be something on your want-list as you’re shopping for homes, which could serve you well when reselling. An energy-efficient home is not only better for the environment but also keeps your monthly bills lower. You are within your rights to inquire with the sellers about their monthly utility bills. If those numbers strike you as high, there may be an opportunity for you to improve the energy efficiency while you’re living there before reselling, which will increase the value.
List of Disclosures
An upfront and honest seller will often have a ‘list of disclosures’ available to prospective buyers. This means that any major repairs (such as damage due to flooding or problems with the foundation, etc.) will be disclosed by the party reselling the home. The list of disclosures will often also include permits and invoicing records so that you, as the buyer, will have the opportunity to research who did the work and when it took place. Now, just because major repairs have taken place does not mean you should avoid purchasing the home. But it is worth noting that this may deter some buyers, including when you want to sell the house in the future.
How much of a blank canvas is the home you’re buying? Are you choosing to invest in a fixer-upper? Do you have plans to make significant renovations and upgrades after you’re purchased the home? If so, that will undoubtedly play into the resale value of the property. There are ways to estimate the ROI (return on investment) of any upgrades you’re considering for the home. The overall potential for a home that will be getting significant upgrades is much larger in terms of resale value than other properties.
Overall, the things you will consider when reselling your home do not significantly differ from what is on your mind when shopping for yourself. If you have questions regarding what to look for when it comes to a resale home, our attorneys hold significant expertise in the area of real estate and are standing by to assist you and answer any inquiries you may have. Contact us today!