The NWM Blog
Written by Northwest Mortgage
Published on Tue, May 5, 2020, Last Updated on Tue, May 5, 2020
When buying a home, we hope to see its value increase with time. We don’t want to invest in a house that would one day be written off as a sunk cost. Even though we can’t predict future events, we can decide on buying a home that we think will pay off in the future. Below are helpful signs to help you identify property whose value will likely increase over the years.
The location of the neighborhood plays a huge role in determining if the home’s value will increase or decrease. Find out the amenities and facilities located near your home. If your home is close to cafes, grocery stores, restaurants, retail stores, and banks, there’s a good chance of your home’s value increasing. The home’s value will also increase if there are parks and trails nearby. Most importantly, the home is in a safe and crime-free neighborhood. Another important factor is the school district, but we’ll get into that more below.
Quiet Street and Curb Appeal
Hardly anyone wants to live near a noisy street. One common thing among all homebuyers is that they want to live on a quiet street with well-maintained lawns. You want to walk down the street in peace. You don’t want to live on a street with houses with faded and peeling paint. Your home will not increase in value significantly if other houses on the same street look run-down, and this is true even if your house is in great condition.
Look around the neighborhood and look for signs of potential growth. New neighborhoods are likely to go up in value as new homes are added in. Look for a variety of house sizes. You don’t want a neighborhood with all one-story houses as that means the home value will flatline. You want variety of heights and sizes, even if the style is roughly the same. Neighborhood pools also play an important role in attracting new families and raising home values.
Good School District
When you decide to buy a home, make sure that it’s located in a good school district. A neighborhood with a good school district will bring in new families and keep the desirability of your home up, thus increasing its value. Assessment of schools changes with time; however, they are not that frequent and happen after a very long period. If the home you’re interested in has a good school district, that rating isn’t likely to change anytime soon, thus making your home desirable and thus increase its value.
Strict Homeowners’ Association (HOA)
Many don’t like the idea of dealing with strict homeowner’s associations as they can be troublesome to work with. However, it can often be good news for your home’s worth. The HOA ensures all homeowners keep their homes well-maintained and in line with the rules and regulations set by them.
Most people will be reluctant to buy a home with an unusual design, as it has little to no mainstream appeal. Its resale value will thus be less. Instead, buy a home with a timeless appeal, as more people will be interested in buying it. Keep an eye on current trends to see what is most likely to appeal to future homebuyers. Here are a few features to keep in mind: ceiling style, floor plan, flooring, and lighting.
When you find the perfect home for you, come to us for new home financing.