If you bought a home during the early 2000’s and sold it off just before the housing bubble burst, you must have made a handsome profit. The house prices have yet to fully recover, but the trend is unmistakably clear – they are rising again. Many people are choosing to invest in a house so that they can sell it later and pocket the difference. They can then use this money to pay for a bigger house, children’s education, or a long postponed vacation to Paris. Whatever the reason is, the essential thing is, if you are buying a house with the intention of selling it down the line, there are a couple of factors you ought to pay attention to. Here we are going to talk about four factors which can help you sell your house for a premium amount.
(1) Location is the most important
You can buy an acre of land in the Sahara for less than a dollar, or you can move to Washington D.C. and consider yourself fortunate if you can afford a few hundred square yard house. Even within the United States, the coastal areas are more expensive than the central plains. Only a few people want to spend their life in the wilderness, or away from cities. Most people want to have a house in a place where there are plenty of employment opportunities. Most people want an easy access to public transport, many green spaces, shopping centers, and recreation spaces. If you have been thinking of investing in a house, try to find one where all these facilities are available.
(2) Renovations can open the door to profit
Many people cannot sell their houses because they need immediate renovations. If you happen to stumble upon a house in a good location, take out your calculator and find out renovation costs. Figure out if you can sell this home for a profit after paying for renovations. You can do that by printing out an online value report. Just visit Neighborhood IQ and get a free online home value report. Now, before you shut down your computer and rush out in search of dilapidated homes, here is an advice – consult a qualified inspector to make an assessment.
(3) Observe what people want
Subscribe to a couple of real estate magazines or newspapers, spend some time every day on the internet, talk to people, and do whatever it takes to find out the kind of homes people are looking for in a particular area. You can figure this out from noticing the properties that are selling fast. Invest in a multiplex if people are looking for condos, or buy a duplex if their demand is going up.
(4) Keep an eye on the economy
You do not need to buy books on Roman poets, Greek philosophers, or Chinese historians. Start reading newspapers, pay attention to economic forecasts. Property rates will rise where jobs are going to shift. Keep an eye on the job market. Is the country doing well? Sell your house if your answer is yes. And if the housing market is bearish, wait.
You can make good money from reselling houses if you pay attention to the above mentioned four common factors that will affect the value of your property a few years from now.