The Biggest Factors in Determining Your Home's Future Resale Value

Although no one can predict the  future of real estate with absolute certainty, there are consistent resale trends that enable us to get a very good idea of what the future holds with regards to amenities and improvements in our homes. There are also a plethora of articles on what renovations make the most sense from an investment standpoint. See this article on Best Improvements for the Greatest Return on Your Investment.

At the end of the day, it's all about the resale value.  Resale Value is specifically defined as the anticipated marketability and worth of your property at a future date.

The single most important factor in establishing resale value is the location of the home. You keep hearing, "Location, Location, Location", and it is true. Think of it location relating directly to resale in this way- Given an exact replica of the same house in two different towns in Fairfield County on an absolutely identical lot, except one of those houses is located in Bridgeport, while the other exact same house is located in Greenwich- which house would be worth more?  I rest my point.

Yes, that's a drastic example, but that was to prove a point. That same house would have a different value within the town of Greenwich depending on what neighborhood it was in.

The next biggest factor in resale happens to be the public school system and how it is rated. This still technically falls under location, it just steps it up a notch. If you look at the home sale statistics for some of the more respected public school districts, you will notice that those areas are valued higher, even if the majority of the children who live in those houses attend private schools.  It doesn't matter whether you have children in the school system or not. Living in a  specific school district with a well respected public school definitely has its pluses for resale.

Next, there are specific types of homes that traditionally have better resale value than others, given all the same square footage, amenities and property. See this previous article on Specific Home Styles Resale Value

Then, we look at the amenities within the house, and the specific features that add to resale. The most sought after features do change over the years and they are truly area specific. A few examples of what once was considered helpful that is now considered standard is having more than one bath in the home. An outdoor above ground or in-ground pool for example might be considered nearly mandatory in Florida, but can be seen as a detriment in the Northeast.

The basic parameters for Resale Value are not the same for each town, and change within the individual price pockets within each  town, 

*Starter range

updates
3 bedrooms or more
1.5 bathrooms or more
interior flow
some type of family space
garage  
storage

*Mid Range

 updates
four bedrooms
2.5 baths or more
at least one area for family space
home office area
2 car garage
storage and closets

*Upper Tiers

luxury appointments
luxury improvements
privacy
above average ceiling height
au-pair suite

What will always help resale value no matter what town you are in, what neighborhood, what style home or what price tier your home is in:

Cleanliness
A pleasant view
Attractive landscaping
Modern and updated kitchen and baths

A Few Tips:

Keep your improvements in line with the neighborhood. Your home should stand out for being beautiful, but not for being overdone. See article on owning the best house on the street
    
If it's not broken, don't fix it. Changing fixtures or appliances that are modern and in good repair will not add resale value to your home.

Need to make a decision about buying or selling your home? Contact me and I'll help you get the most for your money.

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Comments

[Lorene | Poster Printing]

That's true, "changing fixtures or appliances that are modern and in good repair will not add resale value to your home." I guess minor improvements won't hurt it's value, right? Thanks for pointing out some of the most critical factors which some of us, home owners tend to forget to take notice especially in reselling our home.

[Jackie]

Its true- location plays a pivotal key in regard to determining your home value, and unfortunately there isn't much you can do about that particular area. I do think that having a good first impression can do wonders in getting the most for your home.