Anyone who has shopped for a home can attest to the temptation of being lured in by a home’s beauty. But experienced buyers and realtors will warn that when it comes to real estate, there is more to a great investment than what meets the eye.
Location, location, location
A home’s location is easily the most important factor in determining its value. The safety of a neighborhood and the quality of its school district are tried and true ways of assessing the present and future value of a property. Beyond the overall neighborhood, the type of street the home is located on can also cause its affect its value. Buyers tend to prefer quiet streets such as cul-de-sacs because of the increased safety offered by low-traffic areas.
Location is so influential in determining a home’s value that in most cases it is better to opt for a smaller home in a better neighborhood. In fact, the best investments are often the smallest, least attractive homes in highly regarded neighborhoods. This is because you can typically get these homes at comparatively lower prices and there is significant potential for increased equity. Just be sure to have the home thoroughly inspected by an engineer prior to purchasing to avoid being surprised by expensive repairs and structural improvements later on. In addition, you may be able to use these flaws to your advantage in the negotiation process.
Another factor to consider when choosing a neighborhood is the average age of its occupants. Neighborhoods with young families are generally in higher demand than those with older homeowners. You should also do some research into what type of amenities are offered in the area, as well as its future development potential as both will likely impact s home’s value.
And finally, physical appearance should never be ignored when assessing a home’s value. When comparing apples to apples as far as location, things like square footage and property condition are next in importance. After all, there are buyers with larger budgets who prefer newer or updated homes over those they would be required to put a lot of money and work into.
Of course, making sure you get the most out of your investment warrants a considerable amount of research and consideration. The home loan experts at Cliffco Mortgage Bankers would be happy to help you with the process. Call (516) 408-7300 or fill out the form here to get started.