Buying a Home With Resale Value
Location – Local Community, Town or City
Before you can actually pick out a house, you
need to choose what cities or communities you
would like to live in. There are many factors
you should pay attention to, not only for
yourself, but because you intend to eventually
sell the home to someone else. Carefully
choosing your community is the first step in
"location, location, location" and can help
maximize your future potential resale value.
Economic Stability
When choosing a community for your purchase, it
makes the most sense to buy in a city with a
viable and stable economy. Five, ten, or even
fifteen years from now – when you want to sell
your home – you can have a reasonable
expectation that your community will still be a
desirable place to live.
In addition to residential neighborhoods, there
should be a healthy mixture of commercial and
business districts. These not only provide jobs
to the local residents, but also add an income
source that the city can use to upgrade and
maintain roads and city services.
In fact, you should take a drive and see how
well the community is maintained. You have
probably heard of "pride of ownership" when
referring to an individual home or an
automobile. Look to live in a city that
demonstrates community pride, as well.
Local
Government Services
In addition to community pride, check on the
services provided by local government. One
example would be the local library system. Are
there several library branches? Do they stock a
good selection of books, including recent best
sellers?
You should also look into local crime statistics
and see how the city compares to the national
average and other local communities. Is the
police force effective and responsive to
community needs? Are fire stations located
strategically around the community so that they
also can respond quickly in an emergency?
Another area of inquiry is community services.
Does the city sponsor youth sports and have well
maintained athletic facilities and parks? Do
they sponsor community events, such as an annual
parade? Are there activities available for
children, teenagers and senior citizens?
Your local agent, if they are a good one, will
have amassed a wealth of information on these
subjects of inquiry. It is also another reason
to always use a local agent.
Schools
Even if you do not have school-age children and
do not intend to have children, you must pay
attention to the local school system. That is
because when you sell the property, many of your
potential buyers will have concerns of this
nature.
You will want to know if the local schools are
overcrowded. Take a drive around and see if
there are auxiliary trailers outside the local
schools. Call up the local school district and
see if elementary aged children always attend
the school closest to their home. If not, ask
why. Are there enough schools to support the
local population? If not, are there plans to
build new schools? How will building new schools
affect local property taxes?
You should also check to see how local students
score on the standardized tests. You can ask
your agent about these things, but you should
also get the local phone numbers so you can ask
yourself.
There are also school reports available for free
on the Internet.
Property Taxes
Property taxes may be higher in one town than
another nearby city. This can sometimes affect
whether potential homebuyers view a community as
a desirable place to live. Often, they will
choose not to purchase in a community with
higher taxes, though this decision is not always
justified. Higher property taxes often mean
newer and more modern schools, well-maintained
roads, and bountiful community services.
In addition, you will often find that the "cost
per square foot" of homes is lower in cities
that have higher property taxes. This means you
can buy a bigger house for less money. Since the
mortgage payment may be lower, but the property
taxes a bit higher, the monthly housing costs
may be approximately the same in each city.
However, many agents and prospective buyers have
a bias against a community with higher property
taxes. If resale value is important to you, make
property taxes a consideration when choosing the
location of your new home.
