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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