Home buying today for many is a scary thought. There is a lot of unrest due to the many unknowns as our economy pulls out of the recession. Although many questions remain about where our economy and real estate markets area headed in the future, there are a few things you can do to ensure your home purchase survives these economic uncertainties.
Recession proof home buying is all about finding a home with attributes that can weather the storm. Although many areas around the country are experienced housing declines, if you can find the homes with these attributes, they can help offset falling prices now and continue to do so in the long term future.
So how do you protect your investment against the doom and gloom projected market conditions? Start thinking ahead before you even buy. How will the home fair in a market 10 years from now? What about 30 years from now? In order to bulletproof your home purchase from the recession, try looking for these key characteristics:
Cul-de-Sacs Add Value - Small and quiet neighborhoods with a cul-de-sac will minimize traffic flow providing added value to not only your home, but the entire neighborhood. A cul-de-sac is usually part of a fully developed suburban neighborhood which provides security against future developments such as busy roads or large industrial or manufacturing plants.
If you you're looking at large metro areas, cul-de-sacs may be to far from town, so be smart about your purchase. If you are willing to commute to town for the quiet neighborhood, it could work, but keep in mind, a future buyer may not want the commute.
Freeways And Busy Streets - The number one rule to a recession proof home purchase is to stay away from homes on busy streets. A busy street can decrease the value of a home up to 15% or more. Freeways are even worse. The noise and pollution from a large highway will scare potential home buyers away.
Even though a home close to a highway makes it easy for you to commute, remember, when you try to resale that home you'll lose a large pool of buyers. You can't move a house off of a busy street, so unless it's the deal of the century, find something else.
Get The Larger Lot - If two homes are similar, buy the home with the larger lot. Land is a finite resource, we can't make it, and as time goes, it will increase in value do to scarcity. All things being equal, buy the home with more land, you'll thank me later.
Stigmas Can Decrease Value - Homes with social stigmas are hard on resale. For example, if a home had a homicide or suicide occur, that social stigma can bring down the value. Many times these homes are priced lower and they look like a great deal, but there's a reason why their priced so low. People don't like to live in homes where a homicide took place.
Uniqueness Adds Value - Special properties will always sell faster and for more money than a typical property even in a recession. An example of a unique property is a home on water. Waterfront properties are very well received in any market and hold value better than any other type or property. Also, look for unique designs or special features such as mother-in-law apartments, an extra bonus room, or artistic design.
Watch The Flow - Maze like floor plans can be fun and exciting for kids but are bad for resale. If a home is too unique, be wary, especially if you have to walk through a bedroom to get to the only bathroom on the main floor. A home with bad flow is hard for resale, so unless you plan on staying their forever, it's just not worth it to buy a home with a wierd floor plan.
Upgrades And Condition Are Key - Before buying any home, a home buyer should always ask: Does this home need major upgrades and is it in good living condition? Homes that need major upgrades such as faulty wiring, foundation problems, and plumbing should be avoided unless you can get them fixed by the seller.
A homes condition today will only get worse as the years wear on, so look for homes that are well maintained and recently upgraded. Also, keep an eye on the age of appliances. How soon will you have to replace the furnace and does the home have energy star appliances?
Watch Out For Depressed Neighborhoods - A perfect example of a depressed neighborhood is a where there are more foreclosures and short sales than regular listings. Stay away from depressed neighborhoods as those types of properties will bring home values down like a rock sinking in a lake. Look for new up and coming neighborhoods or old neighborhoods with highly desirable amenities and good schools.
No one knows when our economy will recover and housing is still up in arms. If you follow these simple steps when buying a home you can protect your investment and yourself from future economic declines. So when you go home shopping, remember that losing value in a home can be scary, but you shouldn't let it keep you from your dream home.
About The Author: Lisa Udy is an Ogden UT real estate professional providing services for both home buyers and sellers of Ogden UT homesincluding Cache Valley short sales.
