While many of us know our house is an investment, we typically think of it as our home first. It’s central to our lives in a way that other investments aren’t. And we make decisions about our home not based solely on the investment potential, but on how
it will impact our everyday life. But with a little strategic planning, you can make the most of your investment, while still making your house your perfect home.
Over enough time, your house will most likely appreciate in value. But does that alone make it a great investment? On average home rates appreciate at only 1% faster than inflation. That extra 1% won’t account for the costs associated with owning a home, such as
insurance, taxes and maintenance.
But that doesn’t mean your home can’t be a great investment; it just means that you need to think strategically to get a better return on your investment than the average. So, how can you maximize the investment potential of your home?
Buy StrategicallyLocation, Location, Location
No one can predict the future. But knowledgeable professionals, like buyer’s agents, are experts on trends in specific markets. They can help you find homes in up-and-coming neighborhoods, where your home value is more likely to appreciate, and
help you avoid areas where prices are at their peak.
Of course, the investment potential isn’t the only factor in determining where you are going to live. A great buyer’s agent can help you find the perfect home that balances all
of your needs.
Think About Your Future Buyer
Most people don’t realize that a lot of home upgrades are not going to be recouped in the sale price. Some upgrades make your home more comfortable and pleasant for you, but they will not help one bit in resale value.
Others upgrades may not be your top priorities, but can be huge in improving your resale value. Consider fixing your kitchen layout, improved landscaping, or finishing your basement. However, these are only general ideas about what upgrades are worthwhile. The value
of upgrades are also subject to variation based on location and price range.
If you’re looking to do an upgrade and want to make sure you’ll get the most out of it on resale, check with a local real estate agent to get personalized advice on what upgrades make the most sense for your home.
Timing is Everything
Knowing when to sell is a big part of making sure you get the most out of your investment. If selling your home is even a possibility within the next few years, you should be keeping an eye on home prices in your area.
A great listing agent can help you get a great idea of your home’s value and provide market comparisons, even if they know you’re not selling right away. If they know it’s on your radar, they can help you stay on top of the local market so you
don’t miss your chance to make the most on your investment.
You can find out right now what your home is worth! If you live in Lambertville, Temperance, or Monroe, Michigan or surrounding areas, you can use the 123SoldMonroe Market Evaluation tool to get a fast, free estimate of your homes value. Check
it out here.
If you’re interested in getting more advice about buying, selling, or owning a home, please reach out to the 123 Sold Team at email@example.com.