Predicting the Resale Value of a NJ Home

nj real estate

Purchasing a home can be quite a frightening and exhilarating task; there’s so much to think about and consider. It’s definitely necessary to ponder the minute details before purchasing a house, but if you don’t also consider the bigger picture first, you might very well be wasting your time and/or money. A factor that many consider to be of the utmost importance when purchasing a NJ home is that home’s resale value. Unless you plan on staying in that house until you breathe your last breath, you will one day be thinking about selling the very property that you haven’t even bid on yet.

Needless to say, there are countless questions circulating through any buyer’s mind during the house hunting process. One question that may deserve some real thought is what your prospective home may be worth on the real estate market in 10-30 years. Although it may seem impossible to make such a prediction, it actually is possible to make an educated guess.

Obviously, this kind of calculation isn’t an exact science; we can’t predict exactly what will occur in the future. We’re good, but we’re not fortune tellers. There are a variety of factors that influence the value of a home. Some simply cannot be predicted, such as the national economy or the future state of the housing market. On the other hand, remember this key word: location.

“Location, location, location” isn’t just a real estate cliché; it holds actual, substantive, monetary value. For example, as long as people keep having children, a home in a neighborhood will be more popular than an abode along a busy street. From its placement within or outside a neighborhood or whether or not it’s along a busy street, location is everything.

The good news is that if you choose a home with a favorable location, chances are, the location will remain desirable. This will always attract a higher amount of home buyers. Thus, the reverse is also true – if your house sits in an undesirable spot, future sales are more likely to attract less interest. Houses that sit in a wealthier or reputable school district will be wanted more those in poor districts. While we can’t cover every single detail that plays into the location of a property, it is without a doubt the most influential factor in determining the resale value of a home.

Land value also affects the price of a home. Does land typically sell for a high price per square acre in that geographical area? If not, that will lower the resale value of a house.

You might be thinking that those can’t be the only two factors that influence resale values. Good guess – they aren’t! A few weighty indicators of a home with a good resale value include features such as:

·        More than two bedrooms; this is especially true if the home is near a school

·        AT LEAST 2 bathrooms, if not more

·        A designated area for the family to gather (i.e. living room, sitting room)

·        Plenty of storage space and closets in every bedroom

·        Garages are becoming increasingly important to homeowners

·        The oh-so-popular open floor plan

·        An updated and modernized appearance

None of these factors should be too surprising. The term “family gathering place” can simply mean a room where people (family, friends, etc) can spend time together comfortably. Buyers typically look for a room that is spacious and informal. Rooms in a house that can serve dual purposes seem to be more popular these days. Gone are the days of mostly unused formal living rooms and parlors.

All of these factors should be on your mind when buying a home; you want to be making a good investment along with finding the home of your dreams. Come time to sell, your life will be much easier if this a something that you’ve put thought into before making a purchase this important.

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