One of the biggest questions on any homeowner’s mind is whether their home has any real value resale. This query is a complicated question, with no real answer, that you should go through step by step. It’s best to work out what your home was worth when you bought it, and then consider each of the following questions before arriving at your conclusion.
What is my home worth when I buy it?
This question depends on a couple of different factors. Did you buy your home when the economy is in a buyer or a seller’s market? A buyers market is when there is more supply than demand, buyers get to be picky and ask for lower prices and to have sellers cover things like closing costs. This type is a great market to buy into and will usually leave people with a large profit margin. If you purchased in a seller’s market, though, that could be more troublesome. A seller’s market is when there’s more demand than supply, and you may have had to overpay for your home to ensure you were able to buy it at all. Take these into consideration before the next step.
What Improvements Have You Made?
A new house will almost always gain value because properties’ cost is forever rising at a breakneck speed. Still, making improvements and updates may be vital to allow you to get more money out of your home. Some renovations are worth their weight in gold, while others may lose you some money.
Renovating a kitchen, especially within the two years preceding when you want to sell, can add thousands of dollars to your home’s value. You don’t have to go all out; consider the walls, cabinets, and appliances. You can stage the rest of your home to look good, but your kitchen has to be one that buyers will picture themselves cooking in.
Renovations that could leave you losing money are like finishing a basement or redoing a bathroom. Although you may assume a finished basement is a good thing, most homeowners want to make their thumbprint on a property while living there. An unfinished basement gives them the chance to do that and won’t lower your property’s value.
Think carefully before updating any parts of your home if you’re already considering selling the property.
How Has Your Neighborhood Grown?
If you used to have a beautiful view of a mountain range, but it vanished the moment new construction came in, that may have affected your home’s value. Look at how the area around you has grown and morphed, and consider if those changes were better or worse. A new shopping district nearby can help with home value, but a higher crime rate that may come with it could end up stealing away what profit you were considering.
Unfortunately, there’s no clear path to seeing how much your property’s value has changed over the years without talking to a professional. Consider everything carefully, look at similar homes in your area, and be honest about what your house is worth.