If you’re thinking about remodeling your home this year, you’re not alone. As many shifted to working from home in the pandemic, quite a few homeowners decided that they want to make some changes, [...]
What is resale value?
A home’s resale value is the amount it is expected to sell for at some point in the future. Many things, including any improvements made to the property and the overall age and condition of the home, can affect the resale value.
If you’re house hunting, you may be looking at homes in terms of what they are worth right now, how they meet your current needs and how the price compares to similar homes or other homes in the area.
However, you want to consider the resale value, which is how much you can expect to receive if you sell the property in the future. Your home’s current value may not be the same as the resale value, and things you do can make the resale value go up or down.
A home’s resale value is determined by what kinds of features and amenities that homebuyers will be looking for when evaluating homes, such as the location. Homebuyers may specifically want a home in an area with high-quality school districts, close to shopping or with easily accessible public transportation.
A home’s age and condition also affect its resale value. Newer homes tend to be more highly valued, unless they’re old enough to be considered historic. If a home is move-in ready and doesn’t need repairs or upgrades, it also will have a higher value.
Also, you may make home upgrades that suit your needs, but those changes may not have universal appeal. They may be too pricey or upscale for that type of home. In this case, improvements or upgrades don’t boost a home’s resale value.
Resale value example
If you have a two-bedroom house but need extra space for an office or because your family has grown, you may decide to make over the garage. While this adds value to the home for you, it doesn’t add to the resale value because it eliminates the feature of a garage that other homebuyers may want.
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