When you buy a home, you should seriously think about selling it. Okay, that might not make a whole lot of sense at first, but it’s true. The majority of homeowners these days eventually sell their first home and either relocate, or upsize or downsize; depending of course, on their particular situation. The point being that it’s not at all unusual for first time homeowners to sell their property and when that time comes, it’s too late to change the location.
That’s what’s meant by taking a long, hard look at the first residence you buy because you’re highly likely to sell it in the future. During the time you own the property, you can make certain changes to up it’s value but you can also do more than a few things to lower its value. For instance, turning a bedroom into a full-scale office or a home theater room might be right for you but studies have consistently shown that buyers do not like a room to be used for any other purpose than originally intended.
Avoid these Home Buying Mistakes
Location is one factor that comes heavily into play. You ought to be looking at a desirable location. This will give you a larger return on investment. The lesson in this is, don’t buy a home that’s not in a truly desirable location just to own a home at a lower cost because that savings won’t be long term when it comes time to sell.
“If you’re planning to sell your home, chances are good that you’re seeking a lifestyle level-up: you want to bring your home’s size, shape, features, location, maintenance and financial obligations into better alignment with your life – or your future. Making sure that you execute a home sale that actually does align your home with your life requires a lot of prep work.” —Forbes
Don’t buy a fixer-upper if you’re not one hundred percent, completely sure you’re going to fix it up. A lot of people make the fatal mistake of purchasing a home that needs more than a little TLC to save money and be able to make it their personal space. That’s wishful thinking as the costs add up and every weekend is spent on yet another project. This should only be an option if you are completely, without a doubt, willing and financially able to make the necessary improvements.
Another mistake is buying at the very top of your budget. This puts a lot of strain on your finances and, it includes the necessity to believe wholeheartedly that you’ll get a premium selling price down the road when it’s time to buy another home.
Making the Most of Your Next Home Sale
Buying smart and going in with an investment mindset is a crucial aspect of getting the most return on your very large investment. You’ve got to consider the future in order to get a great selling price. Here are some things you need to do to get a bigger return on investment:
- Buy in a desirable location. Okay, so that’s already been addressed, but it bears repeating because it’s an inescapable reality. Location is king in the world of real estate and that’s not ever going to change. Speaking of change, pick a neighborhood that’s solid and one that isn’t likely to change for the worst over time.
- Purchase a home in a good school district. This is going to be tricky, because standards change, as well as teachers and administrators. However, this is important because it’s one of the most primary reasons people choose to purchase a home in a certain area. Homes that are near good schools will sell for more and in less time.
- Buy low to sell high later on. Whatever your price range is, go for the least expensive property and buy at the bottom, not the top of your budget. When you do, you not only lower your monthly financial obligation, but with just a few key improvements, can add instant equity and therefore, value to your home.
- Look past the surface. Great curb appeal doesn’t make a difference when you have to walk through one room to get to another. If you think the floorplan does not flow well, so will every potential buyer in the future when you list your house for sale.
- Get expert opinion and advice. A good real estate agent will be able to give you invaluable information about the neighborhood and the ups and downs of the market. They’ll also be able to spot potential problems.