A home is more than just a roof over your head—if you’re savvy, it could be a lucrative investment, too. So if you’re looking at Biloxi houses for sale, don’t just fixate on a property’s asking price; look further ahead and ask: “Can I get a good deal on this home if I ever decide to sell it?”
Thinking about resale value may seem premature while you’re still house hunting, but you will surely reap the benefits if you make the right decision today. Take a look at the crucial factors that can increase a home’s going rate in the market:
Location
There’s an adage in real estate that goes: “Buy the worst house in the best neighborhood.” It’s counterintuitive but sound advice; after all, you can always renovate a home, but there’s no way to upgrade a bad address. Homes for sale are more expensive in established Bay St. Louis, MS communities, but they do offer excellent returns in the long run. If you’re working with a smaller budget, you can look at promising neighborhoods that are under development. Either way, location should be your number one priority when investing in a home.
Sales history
While you can only project a home’s future resale value, you can track down its historical sales price. That’s because every time a house is sold, tax records must be filed with local authorities. These filings provide concrete data that tells you whether the home’s asking price has increased each time it changed hands. Even better, real estate transaction records are public, meaning any prospective buyer can access them. If you’re working with an agent, ask them to compile a report on your behalf.
Current price
Property values don’t exist in a vacuum—they are largely influenced by comparative home prices. In short, a home’s asking price must fall in line with all other homes in its neighborhood. So even if a house is the most expensive one on its block, it’s not guaranteed to yield good resale value. To begin with, its valuation won’t increase as much because surrounding properties command a lower price. Moreover, you’ll be hard-pressed to find a buyer for a house that’s overpriced for its area and you may end up slashing the asking price as a last resort.
Age and condition
By and large, buyers tend to prefer newer homes over older ones. Properties over 20 years old are harder to sell as there will be concerns about the condition of their structure, roofing, plumbing, and appliances. Of course, lovingly restored historical homes are always in high demand and tend to command excellent resale value—if you can afford them. You could also invest in new constructions, but their value won’t begin appreciating until most homes in a given development are sold out.
Upgrades
Upgrades tend to increase resale value, but certain home improvements yield a better return on investment than others. If you want to sell your home for the best price possible, focus on functional and practical renovations like a kitchen remodel or a bedroom addition. On the flip side, steer clear of “lifestyle” upgrades like swimming pools as not all buyers want to deal with their maintenance costs.
Number of bedrooms and bathrooms
You may feel that a two-bedroom home suits your needs just fine, but that might not be true for future buyers who plan to have more kids. The NAR found that the most commonly sold properties tend to have three bedrooms, suggesting this is the most saleable home configuration. The trade organization also found that most house hunters preferred a two-bathroom property, which isn’t surprising—having a master bathroom and a common bathroom means you won’t have to wait long for your turn to take a shower in the morning.
Good school district
Homebuyers have different backgrounds, but many of them have one thing in common: kids. According to a report by the National Association of REALTORS® (NAR), 61% of all buyers aged 30-39 had a child under 18 years old. This means that good schools are one of the key considerations they have when looking for a house. And it’s no coincidence that properties in excellent school districts also fetch higher prices. Research conducted by the National Bureau of Economic Research found that for every $1 a community spends on public schools, home values increased by $20.
By carefully choosing your home today, you can expect excellent returns in the future. Just be sure to keep these factors in mind when making your decision.
Want to find Gulfport, MS real estate that offers top-notch resale value? Get in touch with Sherry Owen by calling 228.822.9870 or by sending an email to info(at)owenandco(dotted)com today.
