When looking for a new home to buy, should I really be concerned about the resale value?

Timeless features that increase resale value

When considering features that increase a home’s resale value, we examined them from the buyer’s perspective to identify the most common demands. Then, among these common demands, we examined which ones are most likely to yield a higher resale value either now or in the future.

Our list of features is based on:

• Features are timeless– meaning they are in high demand now and will continue to be in demand for years down the road
• Features are shown to increase the value of a home based on industry research and home sales data

Home Location

Ah, yes. The age-old advice is to choose the best location when buying. As clichéd as it seems, it matters.

Choosing a home in a desirable location remains the best investment advice. Most neighborhoods and communities change over time as urban sprawl continues or as new businesses move into communities. And this can certainly have an impact on the desirability of a home’s location. But some location factors continue to be appealing to home buyers. These macro-location factors include access to:

• Airports
• Major hospitals
• Restaurants
• Schools
• Shopping malls
• Transportation systems

Another factor to consider is the home’s access to major highways. This could end up being a double-edged sword if the community’s urban development plan falls short. For example, a home that is desirable now due to its quiet neighborhood could end up being right next to a noisy intersection or major freeway a few years down the road.

Your real estate agent is an expert at helping you look at the potential risks and rewards for these types of factors – don’t forget to ask for their help.

Curb appeal

Having a home that makes you go ‘wow’ when you drive up never goes out of style. According to a survey done by Texas A&M, enhanced curb appeal, on average, can increase the sales prices by 17%.

When considering which home to buy, take a few minutes to view the home’s curb appeal through a time lens. Is the home’s curb appeal something that will last with proper maintenance and upkeep? Here are a few items to look for:

• Landscaping – Look for designs that are easy to manage and maintain. This includes grass that is rich and hearty, as well as native plants that don’t require extensive manicuring and watering. And on that note, make sure there is a sprinkler system to help maintain the landscaping. Or at least, the potential to add a sprinkler system without too much expense or disruption.
• Big yards– For growing families, big yards will continue to be in demand. Corner lots typically have a higher resale value because of the extra elbow room.
• Exterior lighting– According to Kiplinger, 90% of buyers have exterior lighting on their wish list. Great lighting will bathe the home in a soft, warm glow and increase security.
• Nice trees– Trees are important for a home’s resale value for aesthetic reasons, but also because, as they mature, they provide shade that can lower energy bills and give a sense of privacy for the homeowners.
• Well-maintained exterior– Well-maintained Homes have a higher value for obvious reasons. But a well-maintained exterior can also be a great sign that the home has been taken care of inside and out. Some things are hard to see without a thorough inspection, but poor exterior maintenance can be a warning flag about other potential maintenance issues.
• Roof– A good roof could fall under the well-maintained exterior, but it is important enough to give it some extra space. Not only does a good roof add curb appeal, but it also indicates that harmful leaks or other maintenance issues won’t be an issue.

Natural lighting

Buyers can’t get enough natural lighting. Big windows (and lots of them) are a great feature that continues to build in value over time. Natural lighting creates a warm, sun-filled atmosphere that showcases beautiful spaces like no other lighting. It’s also a great mood enhancer—all that Vitamin D coming through the windows and making your rooms come alive! Look for these features that add resale value:

• Big windows in most rooms of the home – especially living areas
• Updated lighting fixtures that act as gorgeous accessories
• Window fixtures such as designer rods that add pizazz
• Wood shutters or shades so homeowners can block out the light when they want
• Energy-efficient windows that let light in and keep the heat or cold out – see also #5 below

A good floor plan

Over time, home designs and styles tend to evolve, making it difficult to predict whether a certain design will add resale value after many years. What you can count on to add resale value, though, are a few amenities and factors that are always in style. A few ‘timeless’ features to look for include:

• Big kitchens: One of the most in-demand features is a big, open kitchen. Homeowners love big kitchens that are great for entertaining and hanging out in.
• Open ‘living’ spaces: Whether inviting a few people over or just hanging out with family, big ‘family living’ spaces remain very popular. Over the years, the specific purpose of this space may change – for example, from playroom to media room, but having space is a key feature that continues to be in high demand.
• Nice size bedrooms and closets: This one is a little tough because bedroom sizes can vary dramatically, but bigger bedrooms and closets are typically much easier to sell than cramped spaces. Unless the bedrooms and closets are exceptionally large, you may not receive a higher resale value, but having small bedrooms and closets will make a home harder to sell.
• Good traffic patterns: Can you get around in the home without feeling like you are in a maze? Good traffic patterns give a home a sense of energy and connectivity. Avoid plans with satellite rooms that are hard to access. Unless, of course, you really don’t like your mother-in-law.
• Great lots: Front yards and back yards will always be important to home buyers. Many times, our ideal image of home is our family gathered in a backyard next to a grill. If the house doesn’t already have built-in outdoor living spaces, look for homes that will at least yield this opportunity so you can create a perfect space as you live in the house. Lot sizes vary significantly depending on the buyer’s situation, but generally, wider lots have higher resale value than long, skinny lots.
• Master bedroom with privacy: Homes with master bedrooms away from other rooms are usually preferred. A private master bath is a must, and larger master bedrooms are highly valued. And the closets? As humans, we’ll always chase the elusive giant master closets.
• Low noise from outside: Look for homes that feel somewhat insulated from the outside noise. Even the most beautiful home becomes less appealing if highway noise keeps the homeowners up all night. Homes located in the interior of neighborhoods offer the best safeguard against new construction close to the neighborhood ruining the quiet neighborhood charm.

Solid Construction

Higher-quality construction and building processes can help a home retain its value much longer. It may be hard for you to tell just by looking at a home, but there are a few ways to help you in this area. Don’t be fooled by expensive-looking finishes and fixtures. These can often mask poor workmanship that can be very expensive to correct.

First, check out the home builder. Are they still in business? No builder is going to admit to building shoddy homes, but luckily, today, there are plenty of other sources to check out a builder. Look up the builder on the BBB site to check for complaints filed, unsolved grievances, and consumer satisfaction over issues that were resolved. Pay attention to the volume of complaints, as this can be a warning sign of dangerous trends with the builder.

In Texas, home builders are not required by law to be licensed; however, some municipalities do require licenses. The better builders usually are licensed, and you can check to see which builders are licensed through the Texas Association of Builders.

Also, check out the home builder’s reviews from previous home buyers. The BBB page will contain information about complaints, and you can search for the builder’s reviews on sites such as Yelp, Google, as well as formal sites such as Consumer Affairs.

When checking out the construction quality of the prospective home, here are a few critical areas to focus on:

• Quality brick or exterior, not veneer
• Crack-free foundation
• Adequate Insulation
• Roof
• Quality, energy-efficient appliances, and equipment (such as HVAC systems)
• Quality windows and doors with high energy-efficiency ratings

Energy efficiency

Did we mention energy efficiency yet? An energy-efficient home is a great feature to look for and ranks high for resale value. The cost of energy is not getting cheaper in our foreseeable future, so this one is a great place to spend time and energy (sorry for the pun) checking out. Look out for energy efficiency in:

• Appliances
• Doors
• Insulation
• Lighting and cooling equipment
• Windows

The U.S. Department of Energy’s Energy Saver online resource provides an extensive guide on conducting an energy efficiency check on your own.

So, in summary, considering the resale value of your future home is a smart move, regardless of when you plan to sell. Your real estate agent is a great source for providing more details and insight into a home’s potential resale value. Don’t forget to run your lists and questions by your agent and tap into their valuable experience.

If you want to talk to a professional before starting your house-hunting journey, The Judi Wright Team is here to help!