Okay…..You are buying a house in Lexington Ky. You are concerned about resale potential because prices keep going up and up. You don’t want to lose your shirt if you ever need to sell in a cooler market. What are you to do?
First off, congratulations for thinking of the exit plan. Any time you make a big financial decision, it is always good to have an exit plan. Right now with so few listings, people are most concerned about finding a house and often don’t think about this step.
So, here are some things that will help ensure you will be okay in the future. Be sure to do them in this order too….by the time you have gone through all of these, you should have a house that will be any buyer’s top pick regardless of the market:
1) Stick with an established neighborhood. Brand new neighborhoods are nice, but you never know what they will be like once they go through their first round of resales.
2) Stick to a good location. Location can really mean a lot of things in real estate. Pick something that is convenient to somewhere. Neighborhoods close to Hamburg, UK, downtown, the interstate, parks, big employers,, etc, all have appeal to a variety of people.
3) Pick a neighborhood with at least average performing schools. Sure, a lot of buyers really want excellent schools, but most of them seem to be just fine with decent ones.
Now that we have narrowed down the location, lets take a look at what to look for in the house itself:
4) Pick a house that fits in with other houses in the neighborhood. You don’t want that split foyer that looks like a half-timbered English cottage in the middle of traditional homes.
5. Pick a house that is similar in size to most in the neighborhood. You don’t want that 5000 square foot McMansion surrounded by 1200 square foot starter homes any more than you want to be the smallest house surrounded by bigger ones.
6. Stick around the middle of the price range for the neighborhood. The cheapest house in the neighborhood may be disappointing to a buyer who is expecting more. The most expensive house in the neighborhood will leave a buyer feeling like the neighborhood is a let down.
7. Go for a lot that is typical for the neighborhood. It is okay to have a sloping yard if every other house does too. Remember….nobody ever complains that a yard or driveway is too flat.
8. As you look at the house, keep in mind that anything that is a big negative to you will also be a big negative to the next buyer. Half bath riiiight off the kitchen bug you? Backyard have no privacy? These are things we called “Deal Breakers” in a slow market. They will keep somebody from wanting your house when they have a choice of more than a handful of houses.
9. If the house made it this far, buy it!