Table of Contents
Latest posts by Larry Rothman (see all)
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- You Can’t Always Rely on Square Footage Numbers - July 20, 2018
- Understanding a Co-op Ownership Structure and Proprietary Lease - July 17, 2018
It is never too early to consider the multitude of factors that influence how much your house or apartment will fetch when you decide to put it on the market. In fact, it is wise to take stock when you are searching for a home that suits your needs. Although it seems premature, one day you or your heirs will be selling the property. A “bargain” now may turn into a nightmare if it is difficult to unload your property due to a lack of appeal.
We examine the primary considerations that affect resale value. In particular, we focus on New York City real estate. After all, items such as lot size and curb appeal may be on the radar of buyers; it is not the sole factor for city dwellers. Of course, if you are searching for a home in one of the outer boroughs, this may come into play, depending on the neighborhood. We are focusing more on Manhattan and urban areas in the outer boroughs.
Location, location, location
It may be a cliché, but it is the most important issue relating to resale. However, there is a multitude of things to contemplate under this broad category. Nor is it a matter of merely buying in the most expensive neighborhood. For instance, there have been many neighborhoods in Brooklyn and Manhattan that have seen a revival over the last several years. Nonetheless, a smaller house in a more affluent area will fetch more than a large home in a more modest neighborhood.
Some qualities make a location more desirable. Foremost is the quality of the schools, making it a key consideration even if you do not plan to have children. There have been several studies tying the quality of schools to the price of homes in the neighborhood. For instance, a recently conducted research showed buyers paid an additional $50 per square foot for homes in top-rated school districts compared to those that are located in average-rated ones. The study is based on over 400,000 sales in about 1,000 school districts across 57 metropolitan markets.
Frequently, test scores considered as the primary basis for the ranking. There is a wealth of information online as well as websites that crunch the numbers. For instance, schooldigger.com provide ratings on New York City school districts.
Several other important criteria make a particular location desirable. These include being on a quiet street, a sense of community, the ability to walk to amenities such as shopping and schools, proximity to parks, and access to public transportation. A view may also be considered essential.
The neighborhood’s zoning should be checked. Although it may not be an issue currently, it could go down the road if certain businesses are allowed. This could create undesirable noise and even pollution.
Choose the Right Neighborhood
Location, location, location – a feature so important, it’s repeated three times in real estate circles and this article. If you truly want the most bang for your resale value while also enjoying your home or apartment while you live there, then you need to choose a great neighborhood along with a great property.
Keep in mind that less than desirable neighborhoods might have the beneficial factor by the time you’re ready to resell. Neighborhood gentrification usually takes five to 10 years depending on the area, so if you’re only planning on living in the apartment or house for a few years before selling, the neighborhood might not reach desirable status yet.
Make Sure Your Curb Appeals
A make or break deal with many homebuyers is curb appeal, so make sure your home is just as beautiful on the outside as it is on the inside. This means a well-constructed with desirable architecture,well maintained from the curb and through-out.
If you’re reselling your apartment, curb appeal plays a significant role. An apartment buildings exterior condition is out of your control, so make sure you choose an apartment in a building with an attractive façade and entrance.
Taking a tour of the inside
Once you have determined the right neighborhood, it is time to examine the apartment. Of course, it will have to meet your current needs and those that may arise over the next few years. It is also wise to contemplate which features will appeal to future buyers down the road.
Square footage is a consideration, but an open layout also weighs in. Still, previous owners liked the privacy of closed off spaces, showing that tastes evolve. However, it is usually an easy fix to create the desired outcome. Regarding bedrooms, although “more is better” is accepted wisdom, it is not always right whenapartment hunting in NYC. The difference in price by going to a three bedroom from a two bedroom apartment is not nearly as significant as increasing from a one bedroom to two bedrooms. Three bedroom apartments are competing with single-family homes.
Some amenities will be attractive to future buyers that will likely stand the test of time. Aside from a spacious, open concept, storage space is essential. Counter space and closets will also be looked upon favorably by future buyers. An updated kitchen is also an excellent attraction, but we will discuss that under the Upgrades heading.
Avoid Too Much Character
Something that you consider charming or unique about a property might not be as attractive to another buyer. So, if you’re buying an apartment with the chance of reselling it in the future, then you should avoid properties with too much character.
Classic architecture and vintage details that match the property’s overall design are all part of the home’s original concept and will add to the resale. But “funky” layouts such as a kitchen you have to walk through to get to the master bedroom and glass brick bathroom walls might hurt the resale value. Look for great bones.
Upgrades: Not all are created equal
After making the purchase, you may very well decide to make renovations. Specific remodeling jobs will add more value than other ones. Kitchens and bathrooms have long been noted to pay for themselves regarding the ability to fetch a higher price when owners decide to resale. The updates do not need to be major overhauls. Simple things like replacing the caulk, updating the hardware on the cabinets, and replacing the faucets can make a difference.
There are other things you can do to increase the value of your home. A well-lit space, including natural light, more efficient heating and air conditioning, and flooring are all items that can boost your home’s value, aside from creating open spaces,
This does not mean you should neglect routine maintenance. It is imperative to keep up with repairs. Little problems like a leak can turn into major ones. A well-maintained home will be an attractive site for future buyers.
Upgrade Where it Counts
If your new home needs some renovations, make sure you upgrade in the areas where it’ll result in a return on your investment. The two most significant returns on your investment are remodeling your kitchen and your bathroom.
Just remember the character tip above during your remodeling adventures and avoid any designs that are over the top. Granite countertops and stainless steel appliances in the kitchen are always a good choice, and simple tiles alongside muted colors in the bathroom are also wise when redesigning.
Remember A Good View Goes a Long Way
As a homeowner, you can change paint colors, upgrade appliances, and install hardwood floors, but you can never replace the view from your living room window. Neither can future homebuyers, which is why it’s important to make sure you have an exposure that positively speaks for itself.
There are other things to consider, which may seem small but will matter to future buyers. You will need to look into the history of the apartment. For instance, if there has been mold, even if it has been remediated, it could turn off some buyers. If the condo is a fifth-floor walk-up, that presents an inconvenience, especially to the elderly or those with little children.
Amenities such as a gym in the building and a doorman are nice features to advertise.
There is a host of factors to consider when purchasing an apartment. For instance, new construction may cost more, but will future the newness wear off when you decide to move? An agent can be of great assistance. After all, he or she does this for a living, while you will only buy a home a couple of times during your lifetime. A buyer’s agent may be in the best position to help since he/she is seeking to put you in the optimal home, while a seller’s agent is likely trying to maximize price and his/her commission.
If you’re considering purchasing an apartment in the New York City area, then you’re already thinking about your future. But, if selling your home down the road is in the cards, then you need to remember regarding potential buyers, as well. With fruitful reselling in mind, here are some things to consider when it comes to the resale value of your new real estate purchase.