How to Choose a New Home That Holds Its Value

There are a lot of things to consider when you choose a new home. Of course you want a home you'll enjoy, but that's likely not the only thing to think about. You’ll also probably want to consider your new home resale value and how to maximize it. After all, the odds are good that this home won’t be your last.

So, do new homes appreciate in value? They certainly can, and we’ll help advise you on what to look for when choosing a new house—keeping an eye both on the home’s enjoyment level and its investment value.

How Should You Choose a Home That Holds Its Value Over Time?


Some things never go out of style, and these are the resale value-adds that you’ll want to focus on. Chief among these considerations is—everybody say it together—location. No surprise there. Quite simply, a quality neighborhood with easy access to area amenities—such as schools, work, and outdoor recreation—will always stand a better chance of attracting potential buyers.

Before working with a homebuilder, it's smart to look carefully at the area surrounding a community and assess what might make it attractive to future homebuyers. That provides you with valuable insight when weighing which community and new home to choose—and increased assurance that you’ll get good value for your home when it’s time to sell and move again.

Model home exterior in San Bernardino, CA


What Other Factors Contribute to a Home's Resale Value?


Another key factor is quality material and craftsmanship. Choosing a new house built with the right stuff, in the right way, can add up to a lot of value over the long term—ensuring that your home is built to the latest standards and built to last. Other factors that contribute to a new house’s resale value over time include:

  • The neighborhood and location
  • The size of the property
  • The state of the housing market
  • The prices of comparable properties in the area


How are Home Values Determined?


Home values are mostly determined based on what the market will bear. In other words, in a hot housing market your home will be worth more than it would be in a down market, all other things being equal. When you sell your home, the real estate agent you work with will use "comps" (comparable properties) to help arrive at a price.

But market and comparable properties aren't the only factors. For example, renovations that you do can also affect your new home's resale value. If you occupy your new home long enough, you’ll likely make some changes—an upgrade here, a design choice there—which could mean more money on a future sale.

Great room with fireplace

 

What are the Most Common Homebuying Mistakes to Avoid?


As you move through the homebuying process, you'll want to avoid some common mistakes. Some of the biggest errors, especially for those unfamiliar with buying a home, include:

  • Buying a house that needs too much work
  • Buying a larger house than necessary
  • Choosing to purchase in a location without good resale
  • Not working with a quality homebuilder

By avoiding big homebuying mistakes and focusing on how to keep resale value over time, you can enjoy a great home that doubles as a sound investment.



Ready to get started on your homebuying journey?

Explore available homes today in prime locations across the nation, or contact us for personalized assistance to find your dream home.

The statements contained herein discuss general factors and do not constitute professional, investment and/or financial advice.