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 2
Now that you know some of the factors that determine home value appreciation, let's talk about how to use that information when you are shopping for your new home.
I know how exciting it is to finally find the kitchen of your dreams in the 50th house you’ve viewed. :) But this is one of those emotions that you really need to control, because unless you plan on living in the home forever, and who really knows that, you will sell it someday and even the most impressive kitchen won’t boost the home’s value if other factors are working against it.
Before you buy your home, do some research. Check municipal records to learn of any land use changes or other plans are in the works that could impact on the future value of the home. The following are some red flags that could decrease the value of your new home:
The rerouting of traffic through the neighborhood if a new commercial or residential development nearby is planned.
Plans for a new facility nearby, such as a hospital, shooting range, power plant or waste facility, etc.
What is the neighborhood's zoning? A multifamily designation may mean that you will one day be living next to an apartment building or in a transient community.
Local regulations will determine of you need to be concerned about the possibility of losing your view or sunlight should your neighbor decide to add a second story to their home. A view is worth money – the loss of it will decrease your home's value.
Perhaps when you do your research you find that there are plans in the works that will boost your home's value:
Passive use parks (those without playgrounds, ball fields, etc.) tend to raise home values while active use parks do not, mostly because of the traffic and noise they generate.
Amenities such as bike lanes, walking and biking paths and trails — homes in bike-able and walk-able neighborhoods have more value than those that don't have these amenities.
Businesses such as Walmart, Target, Starbucks or Whole Foods have a positive impact on home values.
Is the home your considering located in a managed community? If so it is so important to check out the Homeowner Association documents which will let you know how residents are allowed to use the neighborhood. From landscaping requirements to parking prohibitions to the color you are permitted to paint your home, this is important information that my impact the home’s future value, either negatively or positively.
Advice about how to improve a home before putting it on the market is great, but if the home’s location is undesirable due to any number of factors, all the improvements in the world won’t raise its value. The time to ensure you’ll realize a return on your investment is before you make the investment.
I hope this little two-part series helps you in making the best home purchase decision possible. Feel free to contact me with any questions you may have and to assist you in your home search.