5 Surprising Factors That Affect Your Home’s Resale Value

When you want to sell your home, you want to get the best price. There are some obvious things that affect how much your home is worth, like the location, condition, and size. But there are also some surprising factors that can impact your home’s value. This article will explain 5 surprising things that can make a big difference in how much money your home sells for.

The Name of Your Street

You might not think the name of the street your home is on matters much. But it actually can! According to real estate experts at Trulia, people usually prefer streets with names rather than just numbers. For example, living on “Oak Tree Lane” sounds nicer than “127th Street.” The name of your street creates an image in people’s minds. More appealing street names can make your home seem a little bit more valuable.

How Easy it is to Walk Places

These days, many home buyers want to be able to walk to stores, restaurants, parks, and other places instead of having to drive everywhere. Homes in “walkable” neighborhoods where you can easily travel by foot tend to be worth more money. If your home is in an area where you can walk to get groceries, go to cafes, or run errands without driving, that increases the value.

Let me give you an example. Two similar homes are for sale – both have 3 bedrooms and 2 bathrooms and were built around the same time. But one home is in a neighborhood where you have to drive 15-20 minutes to get to stores and restaurants. The other home is located where you can walk 5-10 minutes to get to shops, banks, parks and dining. The home in the more walkable area will likely sell for a higher price.

How Many Bathrooms You Have

You might be surprised to learn that the number of bathrooms in your home is actually pretty important for the resale value. According to real estate company Redfin, single bathroom homes are really only ideal for single people or couples without children. Most families want at least 2 or more bathrooms in their home. More bathrooms mean more value.

Many newer, larger homes today come with dual master bedroom suites that each have their own bathroom. This gives you the convenience of not having to share bathroom space with your children or other family members. Having those dual en-suite bathrooms in the home makes it more appealing to modern families and increases what buyers are willing to pay.

The Crime Rate in Your Neighborhood

The safety level and amount of crime in your neighborhood plays a huge role in your home’s value. Homes in areas with higher crime rates are going to be less desirable and valuable compared to the same home in a safer area with less crime.

Think about it this way – if you were choosing between two identical houses that cost the same amount, but one was located in an area known for frequent robberies, vandalism and other crimes, which would you choose? Most people would gladly pay more money for the home in the safer, lower-crime neighborhood because it provides more peace of mind.

Home buyers, especially those with children, put a premium on living in areas with very little criminal activity. So if the crime statistics for your neighborhood are very good compared to nearby locations, be sure to highlight that as a selling point.

The Quality of Local Schools

For home buyers with school-age children, the performance rankings and overall quality of schools in the district is extremely important. Even buyers without kids often want to purchase in areas zoned for top-rated schools because it protects their home’s future resale value.

Real estate studies show that homes in top-ranked school districts can sell for 20% more or higher compared to similar homes in districts with underperforming schools. In fact, the National Association of Realtors found that 1 out of 5 home buyers said they would go over their budget by 6-10% to get a home with access to the best schools.

So if your home is located in an area with great schools that have high test scores and lots of parent involvement, that is a major selling point that can potentially inflate your home’s value significantly. Quality schools are something home buyers are willing to pay a premium for.

Location and Neighborhood Dynamics

Your specific neighborhood and location within a town or city has a major impact on home resale values. Here are some key location and neighborhood factors that influence prices:

• School district ratings as mentioned above. The better the local schools, the higher home values tend to be.
• Proximity to job centers, transportation, shopping, dining and entertainment. Shorter commute times and closeness to amenities makes a neighborhood more desirable.
• Crime rates in the area. Low crime leads to higher home values, while frequent criminal activity depresses prices.
• Noise levels from things like highways, train tracks, airports and industry. Quieter areas feel more peaceful and sell for more.
• Community amenities such as parks, pools, walking trails, community centers, etc. More amenities increase desirability.
• Overall neighborhood upkeep and vibe. Well-maintained areas with manicured landscaping and a friendly, community feel sell for top dollar.

As you can see, your home’s specific location and the atmosphere of the surrounding neighborhood has a tremendous influence on its potential resale value. When looking to buy, consider the long-term prospects of the area.

Economic Indicators and Market Trends

The overall economic conditions at the time you wish to sell also greatly impact how much you can get for your home. Key economic factors include:

• Interest rates – When mortgage rates are low, it’s easier for buyers to qualify and afford more expensive homes. But when rates rise, buying power decreases and home prices usually decline.
• Employment rates – Areas with strong job markets and low unemployment tend to have higher home values than areas with high unemployment. This is because more people are able to afford to buy when jobs are plentiful.
• Housing inventory and demand – When there is a limited supply of homes for sale and high buyer demand, sellers can name higher asking prices. But when inventory is high and buyers are scarce, prices are pressed down.
• Economic growth – During times of economic expansion and prosperity, home prices rise as buyer confidence increases. But prolonged recessions and weak economies negatively impact prices.

While you can’t control economic cycles, timing your home sale when key indicators are favorable can net you a higher profit. Work closely with an experienced realtor to analyze market trends.

Your Home’s Age and Architectural Style

Two homes could be a similar size and have the same number of bedrooms and bathrooms, but their age and style of construction can translate to different resale values. In general:

• Older homes with historic charm and character like Victorian, Craftsman or Colonial styles tend to appeal to certain buyers and can fetch premium prices if well-maintained. However, they may also require more frequent renovations.
• Newer construction homes with open layouts and contemporary designs like craftsman, Mediterranean or farmhouse styles are very popular with modern families. They tend to need less maintenance initially.
• Homebuyers willing to pay more for unique architectural features like vaulted ceilings, exposed beams, large windows, custom built-ins or quirky design elements.

The architectural style of your home creates a particular aesthetic and vibe that some buyers highly desire. Certain styles can be very trendy and in-demand at times, driving up reseller prices until tastes change again.

Home Size and Functional Layout

We all know that bigger, more spacious homes with plentiful square footage tend to be valued higher than smaller homes. But beyond just total space, the functional layout and use of space is also key, including:

• Logical flow between rooms and good floor plans that maximize usable space
• Adequate closet and storage areas
• Multi-purpose bonus rooms, finished basements or attic spaces
• Open concept kitchen/living/dining areas preferred by many
• Number of bedrooms and bathrooms (more is better for most buyers)

A rambler home with 2500 square feet of chopped up, closed off rooms and small spaces will not be valued as highly as a home with that same size laid out in an open, airy and functional design buyers want.

Condition, Updates and Amenities

The overall condition and recent updates to a home can significantly increase or decrease its potential resale value, including:

• If the home has any structural defects or major systems like plumbing, electrical, HVAC that need replacement.
• Whether the kitchen and bathrooms have been renovated with modern fixtures, appliances and finishes.
• If the home has highly desired amenities like smart home tech, home offices, updated landscaping and curb appeal.
• How well the home shows and if any obvious repairs or cosmetic updates are needed.

An outdated home in need of extensive renovation will sell for far less than a recently updated, move-in ready home with no major issues and desirable new amenities. Fresh paint, new flooring and appliances can go a long way in boosting resale profits.

Conclusion

As you can see, there are many surprising factors beyond just size and location that play a major role in determining your home’s overall resale value and profit potential when selling. From school district quality to architectural style and economic conditions, it’s important to understand all the elements at play.

By being aware of these factors ahead of time, you can hopefully make smart decisions when purchasing your next home to build in maximum resale value down the road. Consult trusted real estate experts to guide you through the process. With some strategic planning, you can potentially increase your home’s profitability when it does come time to put it on the market.