In the Phoenix Real Estate Market, when you embark on a search for the home of your dreams, the last thing on your mind will be selling it later. But sell it you will, even if that’s going to happen in the very distant future. So, it makes sense to look for a home that has the greatest potential for having a good resale value. How do you do that?
When searching for homes for sale in the Phoenix Real Estate Market, in addition to looking for features that appeal to you, you also keep in mind what appeals to others. Here are a few factors to consider: Location-No surprise here – the most important factor in determining a home’s value is its location. But how does one assess a particular location? First, consider the home’s general area – the part of town where it is located. Is it in a desirable area known for stable appreciation? The one that is already popular with buyers, or better yet, an up-and coming area?
Secondly, consider the home’s more immediate neighborhood. Are there enough shops and services in the vicinity? Generally speaking, neighborhoods with the right mix of residential and commercial properties are in bigger demand than pure bedroom communities. Are there any new developments going up nearby that could positively (or negatively) impact the property values? Are the local shopping centers thriving, or are they in decline? This will give you a good idea about the direction in which the area is heading.
And thirdly, consider the home’s immediate surroundings. Are the nearby houses well cared-for; do they show “pride of ownership?” Or do they seem neglected, with peeling paint, unmowed lawns and scattered trash? Beyond the look of the neighborhood, check to make sure that the homes near the one you are considering are relatively similar in size and style. This doesn’t mean that they need to be cookie cutter replicas of each other, just similar enough so that the neighborhood looks cohesive. Many of these observations you can make yourself, or ask your agent for guidance.
Outside your chosen Phoenix area home should have a decentsized front yard and backyard. Try to avoid lots that have odd shapes or that are sloped sharply. It’s best to stick with what’s common for the area. Impressed by fancy, elaborate landscaping? Consider very carefully if you really want this. First, you will pay a premium for it. And second, you’ll have quite a bit of maintenance to keep up its appearance so that you can recoup your investment in the future. If anything, the landscaping is where you can really increase the resale value of your home over the years, if it’s average or below average at the time of your purchase, and you later put in a lot of elbow grease. The most desirable landscaping feature is the one most difficult to put in place – lush mature trees – so the more of those you have on the property at the time of purchase, the better.
When it comes to home size, try not to buy the White Elephant – the largest home in the neighborhood. Why? Because the other homes will be a drag on its appreciation. If you want a really big home, then look for a neighborhood where all the homes are really big. Being average is the safest bet when it comes to size, although buying the smallest house on the block can sometimes be a good move (provided that you buy it at a good price) as the bigger properties nearby can “pull up” its value over time.
INSIDE-Three-bedroom, two-bathroom homes are almost always in the greatest demand. Having more bedrooms or bathrooms is nice, although generally that does not significantly impact the rate of appreciation. However, having only two bedrooms or only one bathroom can handicap a property quite a bit as there is a much smaller market for them (talking strictly houses, not condos). Speaking of bedrooms, it helps if they are split, meaning that the master bedroom does not share walls with the other bedrooms. Walk-in closets are always in demand, and are a great feature to have. Another great feature – natural light. Look for a home with lots of windows (and perhaps a skylight or two) that let plenty of sunshine in. When it comes to the kitchen, the most important room in the house, bigger is definitely better. Modern appliances and plentiful, newer cupboards are extremely important, too. Sure, you can always make improvements to a less-than-perfect kitchen, but the nicer it is when you buy it, the better it will hold its value, and less money (and time) you will need to spend on it later.
What to avoid? Anything outdated, especially if it’s hard to replace. For example, bathroom tubs and showers in funky 70’s colors. Yes, they were (maybe!) cool once, but not any more. Expect to have to replace anything outdated, or suffer a lower sales price later. Now, it’s true that buying an outdated (or just poorly maintained) home can actually be an opportunity as cosmetic fixes can increase its value dramatically. But if that’s the route you wish to go, you have to get enough “discount” on the purchase price first. When you are buying a home, it has to first and foremost suit you. But you are not buying just a home; you are making an investment too. The more your tastes and desires match what the majority of other people like, the better your chances of buying a home in the Phoenix Real Estate Market that will have good resale value.
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