First-time homebuyers in this market are often so excited to win the bidding war for their first home that they do not take time to think about the future and the possibility that this may not be the last home they purchase. They often miss some key factors regarding resale value when purchasing their first home.
Let’s be honest, most of us have no idea where we will be in two, five, or even 15 years, but one thing is for sure the needs of first-time homebuyers change over time. So when purchasing your first home in Rhode Island, think a bit about the future and if this property will have good resale value.
To make your home easier to sell in the future, consider these factors:
- The location. If you have started looking for homes in earnest you will see that every real estate listing is written with certain aspects of the home included. Most listings end with details about the location. Location is crucial to selling quickly and for the most money. Prospective buyers are looking for safe communities, good schools, access to highways, and shopping.
- Square footage and floor plan. As home trends change yearly, a moderately sized home in Providence, Warwick and Kingston with a sensible floor plan will always stand the test of time. In addition, the ability to renovate easily and without changing the home’s structure will make your property more desirable. So, be careful with your renovations, and don’t customize yourself out of the market.
- Bedrooms and bathrooms. How many bathrooms and bedrooms a home should have is as many as will accommodate your family. However, when considering resale, that is not always cut and dry. Not all families want a bedroom for each family member. A home with three bedrooms or more is often a better choice to ensure future resale value. In addition, a house with more than one bathroom (including a master bathroom) will sell better. Buyers will still buy a one-bathroom home but at a much lower price than expected. When given a choice between a two-bath home and a one-bath home, first-time homebuyers in Rhode Island communities will almost always opt for the two-bath home, and a home without a master bath will almost always suffer from a lower resale value.
- The Kitchen. According to a study by House Digest, 42% of homebuyers agree that the kitchen is the most important room in a house. Why are kitchens the most important room to most people? Kitchens are said to be the center of the home. A high-traffic area where family and friends tend to gather; therefore, it is vital to choose a kitchen that is not only beautiful but functional. Styles and trends will change from season to season, so be sure there is room to grow and change for future owners.
- Storage and closet space. Some homebuyers like older historic homes; remember that older homes tend to have small closets and less overall storage space. While adding storage space is possible, it usually means sacrificing living space generally not a popular idea.
- Age and Condition. There are some beautiful historic older homes in Rhode Island that have been well maintained are certainly desired by many homebuyers; however, be clear on the condition of guts of the home. Be sure your home is “future proof” if you want it to appeal to buyers whose lives and needs from a home are different than yours. A nice coat of paint can make an older home look quaint. Still, suppose the heating, plumbing, roof, and electricity have been neglected. In that case, a savvy homebuyer may shy away from your property, or you may lose resale value as they will need to make significant renovations.
- Economic Factors and Mortgage Interest Rates. Well, these are the factors that no one can predict with 100% accuracy. You really can’t plan for this. However, the economic factors that indicate a strong housing market that would garner higher resale value are:
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- Positive Economic Growth
- Low Unemployment
- Low-Interest Rates
- High Consumer Confidence
Technology in homes changes quickly and while just getting into a home in the Rhode Island housing market today is a huge accomplishment today, thinking about the future and your resale value will pay off in the long run. Working with an experienced realtor and loan officer will ensure you make the best choices for today and the future.
