Today is the day! You have spent hours and hours looking for and now think you have found the perfect home, right? Who cares if your Realtor has maybe mentioned a few aspects of the property that might have a negative affect on your market value when and if you sell. You love the home, the price is right and you are certain that any issues mentioned will be minimized in the future. No need to worry about that now, right?
Before you make that leap, please keep in mind that your Realtor should be an expert in the area you are purchasing and should be aware of conditions that could negatively impact your home’s value and marketability. I am not speaking of state required disclosures but simple items that historically have made a difference between identical homes selling quickly and at market value or languishing on the market and selling for far less than the competition.
Why is it that two homes can be in the same community, be of similar size and age, maybe even the same floor plan, and still differ widely as to market value and marketability?
First and foremost, the old mantra of “LOCATION, LOCATION, LOCATION” still stands true. There are simply some location features or benefits that buyers will pay more for and conversely, there are negative features that will drive future buyers away forever. These factors can differ from area to area and what turns off a buyer in the suburbs is simply an unavoidable fact of life in urban environments and visa versa.
Adjacent communities could vary widely in average sales price depending upon the amenities they offer, actual builders constructing the homes and the developer’s reputation for upholding their resident’s market value. A Realtor’s knowledge of the community is crucial to making an informed decision.
In Katy, TX – We have communities that back to one another yet the same home by the same or similar builder will cost thousands more on one side of the fence than the other? Why is that? Strength and reputation of community can affect sales values. And guess what? If the home costs more at purchase, chances it may sell for more than the competition in the future. This is not a given but should be considered if you think saving a little money today is your only consideration.
Items to consider with regard to your lot location that can have a direct negative impact on your future market value: power lines in backyard, backing or siding to a busy roadway, backing to MUD water storage facilities, backing to commercial developement, etc.
Alternatively, favorable features that could be a positive in the future: backing to green space, golf course, lake or water, wooded areas, etc. Most builders or developers will charge a premium to purchase a lot with these positive features but you usually recoup this expense when you go to sell.
So what is a buyer to do? Just take a step back and consider carefully that it is not only the home you purchase but your surroundings as well. And it is far easier to change things you may not love about the home itself than to change things that might be an external detriment down the road.
Ask your Realtor their opinion… and happy House Hunting!