Building the resale value into your home from the very start
Your construction project is going to be a lot of fun, and you are going to learn a lot building your house. Even if it is your dream house, you may eventually move. So, why not plan a house that is going to have a high resale value? A house that you could sell and make money off of? A house that could even act as your retirement fun if you needed it to?
A lot of people think that they are going to make money off their house. It is true that real estate is a great investment because it tends to increase rather than decrease in value over time, but that does not mean you are going to make money. When it comes to making money off your home, the worst way to count on is in paying down your mortgage. In the first few years you will probably pay less than $1000 off your mortgage. So, if you were to live in a house for only a few years, you would have to count on the market going up to get real value or increased equity when you sell. You can still make significant money off your home because of appreciation. But building a house your self is a great idea because you can use the built in equity created if you build the house yourself.
Building with the intent to make money
However, you can increase this value, and this equity, if you build a house with the intent to sell and make money. You want to build a house that has curb appeal, as well as house with high market appeal for other reasons. The right decisions in building, and the right features can add up to 15% or more to the value of your home. So, whether you intend to live there or not for the rest of your life, why not at least plan for the worst, and build a house that you can sell for way more than you owe on it despite appreciation and market conditions.
When you plan your home think of things that will get you the most for your money, not necessarily the just things with the highest appeal. For example, having a pool is going to be a big appeal factor, but pools can cost over $40,000 to put in, and doesn't increase the value of your house by that much. So, research the market and plan your home around what sells.
How to know what builds resale values
To figure out what is the most popular features in houses at the time, and to know what you are going to want to build into your home that will increase the appeal of your house, look for surveys and trends in homes provided by NAHB, to see what are the most popular features to date. For example, right now people really like great rooms rather than a bunch of smaller rooms. They like certain lighting, and there are ways to find out what else is selling. So, find this out, and build your house around what is selling. That way, when you want to sell your house, it appeals to everyone because it is up to date, and offers the best and newest features, like wiring for technology.
When it comes right down to it you will make money if you can plan well, manage effectively, and build a home that has high resale value. Make the most of your planning, and build a house that will sell for tons of money, and make the most of that house. Try to find good deals, and try to get your house to appeal to as many people as possible. You should know that if you build a house with the intent to sell, and plan around what is selling, then you can sell faster, for far more, and make money off your house.
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Tags: ResaleValue RealEstate Construction
