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Home > Home Buying Tips > Keys to Recession Proofing your Home

Keys to Recession Proofing your Home

If you find yourself lying awake at night wondering how the value of your home will hold up in the current recession, it is important to know exactly what makes a home recession proof. The first thing to understand is that even in a recession and a down housing market, there are some things in a home that will still sell. Many people are surprised to find that there are actually homes that not only sell for full value, but over the asking price. The reason is that these homes have been bulletproofed against the economy and are able to hold their value exceptionally well.

Most people thing that upgrades to their home will improve the value or at least help the home to hold its value. This is true, but only to a degree. Some renovations really will do nothing for your home's value. If you are looking at bulletproofing the value of your home, focus on areas such as the kitchen.

One aspect of a home that will always impact its value, for good or worse, is its location. You have probably heard the old cliché 'location, location, location' in terms of real estate. It is still quite true. Location can be essential to the value of a home. If your home is located on a spot that is considered to be desirable because it is in a good school district or near amenities and services, then naturally the home is going to be able to hold its value quite well. This is precisely why there are some homes in certain markets that are continuing to sell quite well and not losing out on sales prices.

While a view is always a good thing to have in a home, remember that there are other elements that are important as well. For example, consider the neighborhood where the home is located. Even if the local market on the whole is experiencing a downtown, if a home is located in a desirable neighborhood in that market, the value of the home could still hold steady. Of course, safety statistics and schools are also important in terms of the value of your home as well. If you live in an area where crime statistics are low and the local schools perform well then there is a greater chance that your home's value will not be affected as much by a recession.

The type of home that you own can have an effect on its value as well. For example, a single family home is usually going to outperform condos in terms of value. This is simple because single family homes tend to be more sought after than condos in almost all markets.

What are the carrying costs like on your home? If they are low, there is a good chance that it will be able to hold its value quite well. On the other hand, if your carrying costs are high then you can expect the value to depreciate to some degree. Examples of carrying costs include homeowner's insurance, maintenance, upgrades, utilities, cost of landscaping, etc.

If you have considered remodeling your home, remember that it is always best to cater to a broad market appeal. While you might like the deep purple hue for the dining room, when it comes to appealing to buyers when you decide to sell, that unique color could hold you back from receiving the price you really want for the home. Instead, consider going with neutral tones that are more likely to appeal to a larger number of buyers. Thinking of putting in a pool? Think again. It is a common misconception that adding a pool to your home will improve the value. In fact, it could dissuade some buyers from even considering your home. The reason is that pools are often considered to be dangerous by parents of young children and are notorious for being expensive to maintain.

Finally, make sure that you stick to a solid floor plan and not one that might be considered complex. Ultimately, the goal is to create a home that is not just appealing to yourself but also to others as well. Remember that while you certainly could have a home that appeals only to you, that is only advisable if you never plan to sell the home in the future, because a home that is built only for your preferences is going to have a far lower pool of prospective future buyers.



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