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PAMD Licence: 3063530
ACN: 111 326 197
ABN: 12 111 326 197
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Buying a Home With Resale Value! Real Estate Buyers Tip 13...
There are many things that should be considered when buying a home.
Since most homebuyers expect to buy a bigger and better home someday
in the future, resale value is an important factor in
decision-making. You use the proceeds from selling one home to buy
the next one.
While no one can guarantee that your home will grow in value, there
are steps you can take that maximize your potential gain.
"Location, Location, Location"
"Location, location, location," is a common and almost hackneyed
phrase in real estate literature. Your agent may even throw it at
you when you ask for advice about buying a home. However, what does
"location, location, location," actually mean? Why repeat it three
times?
Mostly, "location" is repeated to emphasize that it is extremely
important to the resale value of your home. The idea is to buy a
house that will appeal to the largest number of potential future
homebuyers. A careful choice of location can minimize potential
negative influences on future resale value, and maximize positive
influences.
Focusing on resale value requires you to make several different
"location" choices. The first choice you have to make is "which
community?" At the very least, you should narrow your choice down to
just a few local communities.
Location, Location, Location -- What Does That Mean?
Where a home is located is the most important factor in it's value
-- both now and in the future.
For example, suppose you are buying a new home and have a choice
between two identical houses. One is located close to the center of
the tract and the other backs up to a potentially busy street. The
house in the center of the tract will have a greater value.
On the other hand, you may be able to buy a four bedroom house on
the edge of the tract for the same price it would cost to buy a
three bedroom house on the interior of the tract.
And so on...
In an old-fashioned neighborhood with square blocks, a house in the
middle of the block will have more value than an identical house
located on the corner. Corners have more traffic.
A single family house in an area where there are mostly other single
family homes will retain its value better than a similar home in an
area where there are apartments, condominiums, or businesses -- not
because apartments and condominiums are "bad" -- but because the
neighborhood is fairly homogeneous. All the properties are similar
to one another. .
And so on...
A home in a thriving vibrant community will have more value than a
home in a city where industries are failing, the roads are uncared
for and schools are on the decline.
All other things being equal, a home in a desirable location is more
valuable than an identical or similar home in a less desirable
location.
So when deciding what you "need" in a home versus what you "want" in
a home, sometimes it makes sense to settle for what you need in a
desirable location -- providing resale value is important to you.
That's all real estate agents mean when they say "location,
location, location." Location is important because it is the
greatest determining factor in value.
Next: Tip 14... Resale Value - Part 2 - the House
Real Estate Buyer Tips:
Tip 1... Why you should NOT buy a car
Tip 2... Things Not To Do before purchasing a home
Tip 3... Reasons to delay buying a home
Tip 4... Are you Buying a House or a Home?
Tip 5... Why Buying a Home is Good
Tip 6... The Business Cycle
Tip 7... Why Search for a Real Estate Agent
Tip 8... Determining Offer Price
Tip 9... Factors Affecting Offer Price
Tip 10... Writing an Offer to purchase real estate
Tip 11... How Financing Affects Offer
Tip 12... Service Providers when buying a home
Tip 13... Buying A Home With Resale Value
Tip 14... Resale Value - the House
Tip 15... Contingencies and Negotiations
Tip 16... The Deposit
Tip 17... Real versus Personal Property
Tip 18... If you think you need a Bridging Loan
View Seller Tips
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