Very few home buyers think about an exit route. That is asking the question: “How easy or difficult will it be to sell this house when I’m ready?” Everyone thinks about what kind of house they need and how much they can afford, but very few consider the saleability of the identified property? Smart Austin home buyers should and know the best time to think about selling your home is before you buy it.
Location Location Location
The single most important influence on a home’s value is its location. For example, buying a home in stigmatized neighborhood, or located on a busy, noisy street, or built on land prone to soil movement or served by an inferior school district is setting oneself up for a difficult sale in the future. These shortcomings – and many others – are considered incurable defects because they cannot be rectified by applying a reasonable amount of money or effort.
Buying a Home with an Incurable Defect? Don’t Overpay
If you buy a home in a declining neighborhood, near an undesirable landmark or next to the railroad tracks, or in a flood plain, you would not expect to pay as much for it as you would another home that are not impacted by these adverse conditions. That being the case, you should expect to sell it for less than other homes which are absent these same defects.
Pay Attention to Homes with Design Flaws
Similarly, a home with an inept design, such as, an undesirable architectural style (e.g. “A-Frame”), or a functionally obsolete house (e.g. 4 bedrooms & 1 bathroom), or home built on a steep lot with a shared driveway and tall, concrete retaining walls. Any design element that lacks style, proportion or beauty will detract from value.
Your Home is Only Valuable if a Buyer Will Buy It
Remember, your home is worth only what someone is willing to pay you for it. In the buyer’s mind, the value of the home is based on their cost to acquire an equally desirable and valuable substitute home.
Especially Important to Remember During Strong Seller’s Markets
When inventory is low and buyers are facing multiple offers on nearly every house, they often get caught up in in the excitement that they forget to take the time to evaluate how difficult it will be to sell house. In extreme seller’s markets as we are seeing in Austin, homes with design flaws and incurable locational defects are hidden by the shortage of inventory. These types of homes increase in value at the same rate of the other homes on the market, but are the first to feel the hit of a slowed market. Make sure you don’t overpay for this type of home now, so you have a better chance of being able to sell it, no matter what type of market you’re in.
Need A Realtor Who Will Help You Determine How Hard it Will Be to Sell?
We’ve been helping home buyers evaluate homes for a combined 55+ years and we can help you too! We don’t focus on the beautiful kitchen remodel or otherwise try to hard sell you a house. Instead, we help you identify the pros and cons, evaluate resale potential and investigate the property’s condition – the things that will cost you money in the long term. If you don’t want to be sold a home and would rather be given information to evaluate your purchase, we’d be happy to help. Check out our Austin Home Buyer page for more about how we’re not the average Austin Realtor. Then, call us at (512) 827-8323 or email us at info@11OaksRealty.com to schedule a no obligation consultation.