Determine the Resale Value of a Home before You Buy

When you purchase a new home, you typically have a list of preferences for the new Colorado home. The criteria list will likely include detail such as your number of bedrooms and baths, location, floor plan, and so on.  There are a few more things to consider that you may not have considered!

It is important that when you shop for your new home, that you understand that not all buyers have the same criteria in a home, and, although your intentions may be to live in the home forever, the day will likely come that you will resale the home, and you’ll want a home that is attractive to as many buyers as possible.  Simply put, consider the home’s future resale value before you purchase the home.  Yes, there is no sure way to determine the future resale value, but, there are some tips that will help you to determine the potential resale value.

Comparative Market Analysis

When you find a home you think you’d like to purchase then ask your agent for a comparative market analysis.  What this is is a list of other homes that have sold in the neighborhood.  When you receive your comparative market analysis, you will want to consider:

•    What have other house in the neighborhood sold for?  What is the average sale price?  Are they comparable to what you expected?  How do these figures relate to future prices?
•    Of homes that were listed, how many actually sold?  Where there many that never sold?
•    How many days were the homes on the market before they sold?  Do they seem to have been on the market for a considerable amount of time before they received an offer?

Once you have looked over and analyzed the comparative market analysis then drive the neighborhood and look at each home on the list.  Take into consideration the visual of the home, and whether you like what you see.

An Outdoor Inspection of your Prospective Property

When you conduct an outdoor inspection of your potential new home, be objective.  While this may be your dream property and you are biased, you must visualize the property as other buyers will visualize it.  Here, take into consideration the following:

•    The shape of the lot.  If the lot is an odd shape, it will likely be more difficult to resale.
•    Consider the amount of outdoor space in the front and back of the home.  This is a consideration to most potential buyers and you’ll want to ensure that the home has a decent amount of space in both.
•    Is the lot level?  If the lot is not, then you run the risk of drainage issues or water pooling.
•    Is the landscape of the home high-maintenance?  This is often a drawback for potential homebuyers, and you’ll want to consider the maintenance of the yard.
•    The location of the home will also need to be considered.  Is it a home that is in a good location?  Is there an airport nearby with noisy planes overhead?  A railroad track, or high traffic areas, etc.?  If the location is a noisy location, this will definitely be a turnoff.
•    Does the home have a two car garage?  For most homebuyers a two car garage is a must have.
•    Does the home have safety issues?
An Indoor Inspection of your Prospective Property
A visualize inspection of the inside of your potential new home is also important and you want to consider the following:
•    How many bedrooms the home has.  Most homebuyers prefer a home with three to four bedrooms.
•    How many bathrooms the home has.  The ideal number of bathrooms for a home of median (three to four bedrooms) is 2.5.
•    Where is the laundry room?  If the bedrooms are upstairs and the laundry room is downstairs, this is definitely going to be a turnoff for most homebuyers.
•    What is the location of the kitchen to the garage?  The kitchen should be adjacent or close to the garage for convenience.  The kitchen should also be close to the dining room and backyard, as well.

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