In today’s Orange County housing market, buyers and sellers alike try to understand the concept of home value appreciation.
The value of your home may appreciate over time, unlike the purchase of a car which depreciates when you drive it off the lot. Appreciation is based on a few factors.
Location is as important as the home
It’s all about the location, location, location! You have heard this before. Where you buy your home may be the most important and controllable factor to appreciation. If value increase is important to you, make sure to give thought to where you buy.
Ask yourself these questions when buying as it relates to location. Is the house close to major highways? Are there good schools nearby? Is the home conveniently located to entertainment and shopping? Does it have a nice view?
Investing in a desirable location may contribute to equity in your home down the line and can mean more money in your pocket if you decide to sell.
Acres and land accumulate
Another factor to consider is how much you buy. We are talking land, not the physical structure of your house. Think about supply and demand. Land is a precious commodity in Orange County and we are not getting any more of it. As the Earth’s population increases, so does the need for land.
If your budget does not allow for both a big, gorgeous home with a considerable piece of land, you might wish to consider opting for a more conservative home and keep the land.
The benefit of upkeep
Take care of your house. While it may not be as huge a factor as the location and land itself, having a well-maintained house with attractive details and modern amenities might increase the equity of your home. It will also help it sell faster when you are ready. Separate your home from the rest with our home selling tips here!
The external effects
It’s smart to give thought to how your home will appreciate. The reality is that appreciation rates vary based on factors beyond the control of the homebuyer.
The local, national and global economy affects the real estate market. This affects what your home is worth at any given time. To put it simply, the more people could afford to buy homes, the greater the demand becomes for homes. This makes home values rise.
Move fast! Timing is everything
If you are shopping for a house right now, you know that it is a seller’s market. In some locations in Orange County, a house could be under contract within days or hours. This trend has had a positive impact on home values across the nation.
In May of this year, Zillow has reported a national home value index of $199,200. This is an increase of .5% from April this year and 7.4% from last year. To put it simply, sellers have a great chance of getting the most bang for their real estate buck in the current market.
Are you in the market to buy a home in Coto de Caza, Rancho Santa Margarita, or Mission Viejo? Click here to talk to the Ryan Grant Team today!