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No one wants to pay too much for a house – or sell one for too little. However, if you’re not crystal clear on what affects the resale value of a home, you could end up with a bad deal on either end.
The process of correctly valuing a home is complex. A professional appraisal is usually required to help determine the value. However, it’s important to remember that the value of a home and the sales price of a home can differ depending on market conditions like demand.
Ultimately, home resale values hinge on a number of contingencies. For example, did you know it isn’t just the interior and exterior condition of the home, but the entire neighborhood that impacts how much a home is worth?
If you’re curious how your current or prospective home compares, get to know these other factors that affect home value.
1. NICE KITCHENS AND BATHROOMS
According to Trulia, “The rooms buyers most closely inspect (and judge) in a house are the kitchen and owner’s bath. These are the interior spaces where the most value can be added during a sale, so they need to look their best.” When either one of these spaces are modernized, it can improve a home’s value around 3%.
2. ENERGY EFFICIENT UPGRADES
High-efficiency homes are in high demand. Be it extra insulation, LED lights, or smart appliances with Energy Star ratings, these simple upgrades help add tons of value to a home. Some estimates show homeowners can recoup up to 90% of the cost of energy-efficient windows when they sell. Since sustainability and energy efficiency are so important to today’s homebuyers, Hillwood Communities partners with builders who create homes that meet or exceed current national energy efficiency standards.
3. MARKET AND ECONOMIC CONDITIONS
Unfortunately, some home resale value factors are simply out of your control. The economy is one of them. If the country goes into a recession or there’s a local downturn in your area, expect to see home prices reflect that.
4. POOLS OR OTHER AMENITIES
In many cases, having a pool in the backyard can improve the value of a home. But not everyone is equally enthusiastic or comfortable with them. Homebuyers that have small children (or are planning to) may shy away from homes with backyard pools in some cases. That’s when having a community pool, like those in many of Hillwood’s new home communities, can be a big value booster.
5. NEIGHBORHOOD FORECLOSURES
Did you know that appraisers look at the homes around them to compare and determine a final value? In a new home community, that is likely to be less of an issue. However, if you’re moving into an older neighborhood, or one with lots of short sales, you could be in trouble.
6. SCHOOLS
Every parent wants their child to have attend good schools in a top-notch school district. Even homebuyers without children will consider the quality of a home’s schools and its district when making a purchase decision. They know that when they are ready to sell, this will be an important factor for potential buyers. That’s why Hillwood Communities are always located in good school districts. And Hillwood works with the district to bring a new school into the neighborhood whenever possible.
7. LOCATION AND FUTURE DEVELOPMENT
You hear it all the time in real estate: location, location, location. Even the best renovations won’t do you much good if the home is in an undesirable area. That’s why so many of our Hillwood Communities are perfectly positioned in regions poised for growth. We take care to build community-based neighborhoods that offer more than a quick commute to major metropolitan areas. And even those with big city proximity still have a small town feel where residents can connect with their neighbors.
FAQ SECTION:
What does resale mean in real estate?
Resale homes are those that have been previously occupied by another homeowner and put back on the market for sale.
How do you increase the resale value of a home?
Certain renovations like bathroom and kitchen remodels or energy efficiency upgrades can increase the resale value of a home by several thousand dollars.
How do I find the resale value of my home?
Using online valuation tools like Zillow can give you a ballpark figure, but they aren’t completely accurate ways to determine the value of your home. Prospective sellers are better off consulting a real estate professional who can conduct a thorough and more accurate Comparative Market Analysis (CMA).
What devalues your home?
Poor curb appeal, neighborhood foreclosures, dated design, inferior schools, and older existing homes in poor condition nearby can devalue the price of a home.
GET BETTER LONG- AND SHORT-TERM HOME VALUE AT HILLWOOD COMMUNITIES
Hillwood Communities are committed to delivering lasting value to modern homeowners. As one of the leading residential real estate developers in the country with a track record of excellence, homes here are designed to hold their value by giving buyers what they want including quality designs, great schools, amenities, proximity to cities, a strong sense of community, and unbeatable curb appeal.
Ready to find a home you can truly value? Find your new home here!
