There was a time when selling your home could mean a huge profit. Homeowners could even use their homes as ATMs through the use of home equity loans to buy cars, pay for vacations or college educations, and renovate their homes.
With the drop in home values over the last few years, many homeowners find themselves with zero or negative equity in their homes. Although the decline in home prices has subsided, we're beginning to see values begin to rise. This means buyers are more confident in buying a home and seeing their investment make money for them down the road.
Here are some factors to keep in mind that will make profiting from you home more likely.
High-demand neighborhoods. Areas located close to centers where job creation is high and have a good transportation system enhance home values. Location is always a key factor when determining home value. Buyers want quality housing in close proximity to green spaces, recreation, good shopping and transportation.
Buy the ugly house on the best block. A great investment is to buy the home in a great neighborhood that needs some updates and lacks curb appeal. By putting some money into the home and bringing it up to the quality of the rest of the neighboring homes you're likely to add instant equity.
Don't cut corners while renovating. Shoddy renovations will be seen for what they are when you sell. Look into what buyers want and how much they're willing to pay for it to ensure you don't over improve for the neighborhood.
Count your lucky stars. Let's be honest, luck is always in play when trying to make a profit on your home. A neighborhood next to one that's already a highly desirable place may be a good investment.
At the end of the day, if the market presents an opportunity to sell at a profit, take it. If you're considering buying or selling your home, give me a call and I'll help you figure out a good financial plan.
Weichert, Realtors - Media
606 E. Baltimore Pike