When most people approach the prospect of buying a home, the ultimate resale value probably isn’t the first priority. In many cases they are seeking a property that meets certain needs, whether it has enough rooms to support their current family (or account for future growth), a yard for kids to play in, and a modern, gourmet kitchen, or it provides a good school district, a safe neighborhood, and proximity to a job, just for example. In addition, the majority of prospective buyers are working with a budget, which can limit options. So when it comes to considering the potential for resale value down the road, you simply might not be thinking that far ahead. However, you have to consider that buying a home for personal use also entails purchasing a financial asset, and an expensive one at that. You need to know that the money you’re putting in is going to pay off at some point with a return on investment. So here are just a few things you may want to think about before you buy.
The first thing to consider is the age and condition of the home itself. If you’re purchasing a property that’s older than you, you’re likely to encounter all kinds of issues. For example, roof leaks, plumbing problems, inadequate electrical systems, and outdated decor are all things that you might find in an older home (as well as hazards like popcorn ceilings that contain asbestos). What this means for you should you purchase the home is sinking in a lot more money if you want to turn your fixer-upper into an attractive property for another buyer during your tenure in residence. Of course, in many cases such upgrades can significantly add to the value of your home, so it’s certainly something to think about if you happen to be a handy sort.
