MARKET TRENDS: Keep Resale in Mind When Buying a Home

The real estate market is a highly fluctuating market, with fantastic ups, dramatic falls and sometimes unexpected turns. Home prices are influenced by many complex variables that even experts cannot accurately predict.

For many buyers purchasing a home, resale is something in the unimaginable future. Many buy with plans to raise a family and stay for the long term.  However, studies show that people now move more than ever before, whether for job opportunities, because of divorces or for myriad other reasons. Statistics show that an average family stays in a home only 5 to 7 years.

Fixating strictly on purchase price can prove costly down the road. Instead, buyers should look beyond price to qualities that keep a property attractive to new buyers over the long haul: prime location, good schools, nearby transportation, low crime rates, etc. The value of a property having these qualities tends to recover more quickly after a downturn in the market.

Buying a property with good potential for renovation or extension can also be a positive upon resale. It is advisable to consult with an architect and a contractor to get a better understanding of what changes are permitted and feasible. Evaluate and discuss the options that you have with your agent. A good agent can provide you with projected resale price based upon the anticipated or historical increase in value in the neighborhood. Treat the home as an investment on which you want a good return.

Real estate continues to be one of the most stable investments you can make. If you buy the right home, it will likely prove to be one of your most valuable assets.