House buying is not like shopping for your everyday consumer product. Homes are investment acquistions but sometimes buyers confuse the overall concept of buying a home with major consumer purchases such as a car. They tend to look at only what’s on the surface and ignore the subtle nuances that make a home more or less valuable. Here are some general guidelines on how to rank the value of a home from least to greatest.
1. Cosmetic – Quite often you can come across a home in a great location in need of a makeover. Unfortunately when an inexperienced buyer comes across a home like this they tend to cross it off their list due to the lack of upgrades in the kitchen or the blue carpet on the floor. What they don’t know is if they purchased that great piece of real estate in need of a makeover, and put money into it over time, they would not only make their money back they would also profit handsomely. If you can afford to deal with the cosmetic issues of a home in a great location it is always a better buy than purchasing a home that has all the bells and whistles but in an area where no one wants to be.
2. Schools – Most buyers aren’t always aware that school districts can play a pivotal role in property values. But while it’s important the reality is it’s not as important as most people think. Some buyers believe that unless they’re in a great school district they won’t have access to the best schools and the home won’t be worth as much. However, the general market does not seem to give school districts as much influence over their buying decisions as some might think. Buyers should look for great school districts when considering their home purchase but if it’s not the district at the absolute top of your list the next best one could be just as valuable.
3. Proximity to Amenities – Being in a great location where you can be near everything is what most buyers want. Buyers want to be near the grocery store, shopping hubs, nightlife, easy access to transportation or highways, beaches, lakes, and more! The best buys are in areas where people can have fun, pick up their groceries, and get to work quickly. So as you’re starting your home search look for the best real estate you can afford. In today’s market, the closer you are to the “hustle and bustle” the more valuable the real estate.