With such low-interest rates on mortgages, it's no wonder why people are rushing to secure a home right now. Combined with the extremely low inventory on the market right now, we're seeing something
Your House is an Investment : 5 Metrics to Consider
Dated: October 23 2020
When you buy a home, you want to know that it will hold its value, and even increase in value over time.
It’s important to ask yourself “what kind of potential does this house offer?”
There is a myriad of aspects to consider when making these kinds of calculations, but I’ve boiled them down to five metrics that you might not have considered yet:
1) What upgrades/renovations does it have: Start in the kitchen and work your way out from there. Kitchen upgrades and renovations pay for themselves in the long run. So if it looks like the kitchen can be revamped, improved, or even re-imagined, this is something you can work into your budget and earmark for later. But it doesn’t end there... Renovations that add square footage to the house are also highly valuable and get you a large dollar return. It pays to opt-in additions that increase the square footage.
Last but not least, power-saving upgrades are an excellent value-add to any house; take in how efficient the power situation is, and how much it will cost to maximize that efficiency.
2) Look at the statistical sales history: One thing that many buyers and sellers overlook is the sales history of a home. With this knowledge in hand, you can effectively gauge how much more you’ll be able to sell for in the future. You can work with an expert, like me, in this area to give you a realistic idea.
3) Air B & B or Rental Potential: If the home has rental potential, that’s an immediate value add. Consider its proximity to public places, hot spots, tourist attractions, or any other destination people might like to visit. The closer you are, the more earning potential the house has in the case that you decide to rent it out.
4) The Feng Shui: do you feel it? A home with great flow is always going to sell for higher. Feng Shui is a Chinese concept that every homeowner should familiarize themselves with because once you’re aware of its existence, you’ll immediately look at your space differently. Feng Shui employs the principles of shape and energy flow to construct spaces that are perfectly pleasing to be in.
Ask yourself if the floorplan leads you into the house and feels inviting. If you feel cramped or underwhelmed, that’s something to pay attention to.
5) Location: Finally, consider the location of the home. Are you on water-front property? Or are you near a freeway? These are, practically speaking, the two poles of the spectrum when gauging how valuable the home is.
(Extra points if you do the research to learn what nearby developments might affect the house's value in the future: is there a stadium scheduled for construction nearby? Is there a burgeoning downtown area with a budding nightlife?)
In my 29+ years of experience, I have helped hundreds of families buy and sell their homes. My business goal has always been to obtain the most value for my clients in the shortest possible ....