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When looking for a home, one common piece of advice is to choose a property that will appreciate in value. However, value is subjective. For example, a dream home with an in-ground pool for one person might be a hassle for another. These three house hunting tips will aid you in objectively assessing a property’s potential and identifying the assets that tend to appreciate in value the most.
Look for Hidden Gem Neighborhoods
Some house hunters search for neighborhoods that have already become popular, but buying in a hot neighborhood means you’ve missed out on much of the appreciation. These homes have already seen a boost in value due to the appeal of the area.
To find a home that will appreciate in value, focus on neighborhoods with moderately priced houses showing signs of potential growth: well-kept homes, low crime rates, and close proximity to schools or parks. Purchasing before the neighborhood gains popularity ensures you’ll maximize your potential profit.
Find the Perfect Fixer-Upper
It’s common knowledge that fixer-uppers can be a good investment, but take note: Not everyone is willing to put in the work themselves or able to pay for needed repairs. Some fixer-uppers also have too many issues, such as foundation or structural problems, so you would not be able to recoup your expenses when selling the home. Search for homes that need only cosmetic improvements.
The key to finding a worthwhile fixer-upper is to know what tasks you’re willing to do yourself and when you need to call in a professional. Evaluate potential gains by crunching numbers before putting in an offer. Avoid making an offer if a property requires more work than you’re financially prepared to undertake.
Prioritize Amenities and Curb Appeal
Look for a home with amenities that are always in demand, such as a nice yard, patio, or front yard flower garden. Often, it only takes a fresh coat of paint or a little bit of staging—such as setting out potted plants or patio furniture—to boost curb appeal and entice buyers. Homes near parks, schools, or other local amenities also attract buyers and have a built-in value.
Consider the house hunting process through the lens of what your home will be worth in the future. Will it increase in value to make you a considerable profit? Look for attributes that are attractive to a wide range of buyers to help narrow down your search and give you confidence in your new home.
