Buying a home with resale value helped my family to create our must-have list for our home purchase the second time around. Here are my 9 tips to look for when buying a home.
This post was sponsored, and paid for, by SunTrust Mortgage. All opinions are my own.
One financial mistake my husband and I made during our newlywed years was purchasing a home with poor resale value.
We didn’t consider then that the house we loved would not be very marketable when we wanted to sell it down the road.
We had no idea that less than a year after we purchased it that the home would lose value–and six years later we would lose that home.
Fast forward to 2013, when we purchased our second home. That time around, we considered our future plans and knew that buying a home with resale value was integral for us to sell our house in the future, which really helped us create our must-have list.
When you’re looking to purchase your first (or next!) home, keep the following 9 tips for buying a home in mind. As well, check out this free, downloadable home buying guide from SunTrust Mortgage.
Buying a Home with Resale Value
The following nine items are things we looked for in a home when we were buying a second time around. We were able to buy a home with seven of the nine, and we were happy with that!
1. Number of bedrooms.
As stated above, homes with three or more bedrooms sell faster. In some areas, homes with fewer than four bedrooms sit on the market for longer.
Our first home only had two bedrooms and no garage. Homes with three bedrooms (and garages) open up the floor gates of potential buyers—even compared to homes of the same square footage that can only offer two bedrooms.
Our second home has 4 bedrooms. Not only did we need the space, but we wanted to buy a home with four bedroom homes because we knew it would up the resale value of our house.
2. Storage space.
As stated above, homes with garages are much more likely to sell faster than those without them.
As well, homes with plenty of closet space and an attic will have better resale value. Homes with basements can be rare in some areas, but those with them can also sell faster.
We were so happy to purchase a home with both a garage and attic as well as plenty of closets the second time around!
3. Lot size.
Larger lots sell faster than homes on smaller ones in the same neighborhood—even if the homes are the same size.
Our current home has a good-sized backyard–large enough for a butterfly garden and two small vegetable gardens. It it a great yard size for kids to play in, which we know will make it attractive to potential sellers down the road.
4. Curb appeal.
Well-maintained, landscaped yards are more likely to sell than those without them.
If you’re purchasing a home with an unsightly yard, be prepared to invest both time and money in landscaping efforts (everyone will need to at least maintain yard work, but you’ll have a leg up if you purchase a home with an already-maintained yard).
Our current home had the potential for a well-landscaped yard when we purchased it, but my husband had invested a lot of time into perfecting it. In fact, we recently had a friend comment that I had married a horticulturalist! We know all of the hard work he had invested will pay off when it comes time to resell our home.
5. Age of Roof, HVAC, and Water Heater.
Roofs last anywhere from 15 to 30 years. HVAC systems last between 15 to 20 years. Hot water heaters last 8 to 12 years.
If you are purchasing a home with older models of any of these and don’t plan to stay in the home forever, keep in mind that you might need to replace one or all of them before selling the home—in order to get the best price for the house.
We almost walked away from the contract on our current home because the inspector said the roof only had two to three years left on it. We knew that we could not afford to put down a sizable down payment and replace the roof so quickly. Thankfully, the seller came through with a new roof! We compromised on the HVAC and the hot water heater, which we knew we would have to replace down the line.
6. Location.
Homes in desirable school districts and close to shopping, hospitals, and schools will sell better than those outside the beaten path or in school districts that are fair lower in national and stat rankings.
Homes in cul-de-sacs within a neighborhood sell better as well.
Our current home is in one of the best school districts in our state, which we know will up our resale value.
7. Neighborhood Amenities.
Homes in neighborhoods with pools, recreation centers, and walking trails will sell better than those in neighborhoods with no amenities.
We compromised on neighborhood amenities with our current home. At the time we purchased it, we just couldn’t afford the same square footage in a neighborhood with a pool, etc.
8. Size of home for neighborhood.
Smaller or medium-sized homes in a neighborhood with larger homes will be able to get more money per square foot than the largest homes in the neighborhood.
This is another area where we compromised. We purchased a larger home for our neighborhood because it fit within our budget.
9. Upgrades.
Homes with no upgrades—like wood floors, granite countertops, and crown molding—in a neighborhood full of homes with them with be less likely to sell at a premium price.
That said, it’s unwise to invest in upgrades that will price your home out of your current neighborhood. If your home is the only home in the neighborhood with upgrades, it is unlikely your home will assess for the tax value you need to sell the house for the price you might desire.
It’s best to evaluate home upgrades in light of what the other homes in your area offer.
Weighing the home’s resale value really helped us to create our must-haves list, so when you’re in the market consider these 9 tips to include on your list.
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What are your best tips for buying a home with resale value?
At SunTrust Mortgage, we make it a priority to learn all about your unique circumstances. Confidence starts with a conversation.
Talk with a SunTrust Mortgage expert today.
This post was sponsored, and paid for, by SunTrust Mortgage. All opinions are my own.
Lois
Dear Erin, My husband and I are just in the process of buying our first home and these tips are so useful. Especially number 5! Your new book sounds fascinating; I’ve got The Woven Heart and found it so encouraging. I’ll be pre-ordering pronto.
Erin
I’m excited for you, and I’m glad you found the post helpful, Lois! Thanks so much for pre-ordering my book! I hope you will enjoy it and find it both encouraging and practical!
Derek Dewitt
My wife and I are thinking about getting our first home together but are also thinking about the long term resale value of the home. I like that you mention how having an appealing yard can save you from having to renovate it down the road. If we resell the home we’ll make sure the yard is nice and tidy so it gets off the market quicker. Thanks for the tips!
Erin
My husband has done an amazing job on our yard. Glad you found this article helpful!
Bobby Saint
I like that you provided some tips to buy a home that will sell such as investing in curb appeal. It is recommended that you purchase a home that has a well-maintained garden, patio, and lawn. These are the first things a potential buyer would actually notice once he steps in front of the property. Hence, you may want to consider buying a house that has great landscape features. If I were to buy real estate property, I would make sure to keep this in mind. Thanks.
Derek Dewitt
My wife and I are wanting to sell our home later this year, so thanks for sharing these tips. I like your point about how, when buying a new home, check to see how old the HVAC systems are. I want to know if I need to replace these down the line, so I’ll be sure to ask about this.