8 Reasons Why to Buy a House with Selling in Mind

Shopping for your dream home does not naturally include thinking about selling it later.  However, you will hear professional investors say, “You will make your profit when you buy right.”

You may think the future home will be perfect for the rest of your life.  In most cases, life doesn’t turn out that way.  Below is a list of things to consider when purchasing that will affect your future resale profit:

1. Good Location:  The old adage about location, location, location being the three most important factors in real estate value is still true.  Perhaps even more true than in the past with buyers empowered with data about every single factor affecting price.

2. School Quality:  Of all the location factors, schools lead in the importance to market value.  Even if you have no children or they are already out of the house, the quality of schools affects the value and future value of your home. 

3. Conforming Structure:  You may be the type who loves something unique and quirky.  Be cautious about investing your hard earned money in a unique design that renders in un-conforming in the minds of lenders and buyers.  It makes more economic sense to indulge your quirky streak in decoration, entertainment or friends.  Ask a listing agent tasked with the challenge of selling a round house.

4. Timeless Features:  Trends come and go over time.  The handsome beaded pine paneling of the 70’s became yellowed and undesirable to the marketplace by the end of the century.  Enjoy trends that you truly love, but know the more edgy the trend, the more likely you will need to replace it when it comes time to sell later.

5. Mid-Market Safety:  The most likely place within a neighborhood for you to gain equity is in the middle of the price range and size of neighboring homes.  Both the smallest and largest homes will be adversely affected by the average size home.

6. Functional Obsolescence:  This is a fancy term for homes with features the market no longer wants.  For example, homes of any size are hard to sell without 2 bathrooms these days.  Since lots of homes prior to the 1970’s had less than 2 full baths, those home will never be easy to sell unless upgraded.  The same trend is happening for homes with less than 4 bedrooms or less than a 3 car garage in many communities.

7. Neighbors:  It can be hard to resist the really nice home at a great price.  Look around to determine why the price is so good and often you will learn it is because the neighbors do not have such a nice home.  While you may not care about what happens next door as long as you’re safe and can enjoy the great home, the surrounding poor conditions will always drive the price down on your home.

8. Upgrade Cycles:  There are two upgrade cycles to keep in mind.  The first is the average time spent in a house before moving.  In our area, the average ranges between 5-7 years.  The other upgrade cycle to recognize pertains to the economic life of house components.  After about 10 years major components like HVAC units; roofs; water heaters and more begin to need replacement.