Imagine you’re especially interested in value. You’re buying a principal residence to live in, but you also expect this home will comprise a large part of your net worth. You plan to live in it for a number of years, but it isn’t your forever home. In this case, you’ll want to do everything you can to ensure that when you sell, the property will have gained more value than the market average.
In real estate circles, there’s an understanding that we make money when we buy a property, not when we sell it. Only when we buy do we have control over the price. When we sell, we can and do influence the price (which we’ve discussed), but the price a buyer is willing to pay is ultimately up to them. So, what should you consider when you’re buying if resale value is your top priority?
1. Location: Some locations are always desirable. Consider properties close to city centres, amenities, beaches or parks and good school districts, on quiet streets.
2. Condition: Choosing an unrenovated home allows you to make low-cost, high-impact upgrades that, with some time and effort, can add value to your home. Smart renovations should increase profitability when you sell, compared to buying a fully renovated home today.
3. Building quality: If you’re buying an original-condition condo in an older building, make sure the building is well maintained with a good market reputation. The upgrades you make will get maximum value, because buyers won’t discount their offers for a less-than ideal building.
4. Find a diamond in the rough: We’ve already covered how sellers can achieve a higher price with a robust marketing strategy that includes cleaning, staging and more. By the same logic, a property that isn’t fully marketed can represent the best purchase value. Estate sales, court-ordered sales, for sale by owner, or any property that doesn’t appear clean and staged can be a great opportunity for a savvy buyer who sees hidden potential.
5. Time: The longer you can hold a home before selling it, the better its value. Real estate agent and legal fees, property transfer taxes and moving costs are expensive and nibble away at your equity. So, plan to spend a minimum of five years in your home. Longer is even better.
6. Floor plan: Some are just better than others. While a non-traditional layout may work for you, considering what most buyers want can protect your investment. The placement of the kitchen and living areas, bedrooms and bathrooms can make a big difference to the desirability of a property in a buyer’s eyes.
A Q&A with Mary Cleaver, the author of You Can’t Live in the Ceilings.
Mary Cleaver recently published You Can’t Live in the Ceilings, a practical guide to everything about buying and selling real estate in BC. We sat down with her to ask why she wrote this book and what she hopes Homeseekers will gain from reading it.
