Plan for resale when you’re building.
By SCOTT MOORE, REALTOR
NOVEMBER 20, 2017Even if you are building your “forever home,” you are still building an investment, and there are a number of factors to consider during the build process regarding the eventual resale value of your home.
The most important factor: the location of the lot. The lot location will be the single largest factor in the eventual resale value of your home. A larger lot, a lot backing on a park or a pathway, or even a lake lot will cost you more at the outset but that difference will appreciate at a rate much quicker than anything else in your build. A $20k premium to get a better lot is the best money you will spend on your build—even at the expense of finishing items. Laminate countertops can easily be replaced later on with quartz but an inferior lot can never be changed.
The second most important factor: size. The vast majority of buyers in an area like Bridgwater are families, and families want space. If you need to save money to afford more square footage, you can switch out builder basic lighting for designer down the line, or do the backyard landscaping yourself with seed rather than getting pros to do it with sod. What you can’t do is make your house bigger if you outgrow it or to make it more desirable on resale.
Third most important: number of bedrooms. Please don’t build a home with only two bedrooms upstairs. If I had a dollar for every time we got feedback on a two-bedroom home along the lines of “love the finishing work and the layout, just need 3 beds up,” I would be on a boat in the Bahamas now instead of writing this article. And unfortunately, additional bedrooms in a finished basement won’t make up for it. Even if 2 beds works perfectly for you, squeezing in even a small 3 rd bedroom above grade will pay off down the line in spades.
Final piece of advice: make sure you get guidance about your build from a REALTOR that is experienced & knowledgeable about resale in the area. This little list barely scratches the surface of the choices you can make that will either harm or help you on resale.
Even if you don’t sell your home for decades, either you or your descendants will eventually sell it, and if you built a smart investment the eventual sale will be easier and more profitable if you set it up correctly from the beginning.