If you have been considering purchasing a home, you may be curious to know if this is the right time in the market to make your move. The market is fast changing, with new laws coming into play,
Factors That Determine Home Value Appreciation Part 1
Purchasing a home is a major investment, and you must think of the future instead of following your emotions if you are hoping that your purchase will make money for you when you're ready to sell. While there is no magic formula, there are some factors that will help to realize this goal when making your home purchase decision.
What determines the future value of a home?
Many of the factors used to determine a home’s current market value can also be considered when trying to determine whether your purchase will hold that value or increase in value, such as location, land values, market conditions, the economy, condition, size, age, layout of the home and the types of updates a home has.
Location, location, location - you've heard these words used so many times by Realtors when describing a home and there's a good reason for that! A home's location in a town or city, even so far as the street it's located on, is a huge factor in determining not only current value but also future value. For example, in the town I live in, Beaver PA, a home has a higher value if it's located on the river side of the main road as opposed to being located on the opposite side. In sub-divisions, a cul-de-sac location is considered to be one of the best locations for families and after that the homes located deeper in the sub-division.
Homes on a main road, backing to a main road or backing up to commercial property are not as desirable for families and therefore the current and future value may be lower. While you may get a good deal on these homes now, it may be just the opposite when you go to sell, a fact that most buyers don't think about when purchasing.
Homes located in high ranking school districts have a much higher value then homes located in lower ranking school districts. In fact, in many areas school district can impact home prices more than anything else.
One thing you want to avoid is buying the most expensive home in the neighborhood if your goal is to see value appreciation. An exception to this is if a neighborhood is being built up, such as smaller and/or older homes are being torn down and new, more expensive homes are being built at even more the cost of the home you are purchasing.
Jeanni Prescan, Realtor