This age old adage comes up most any time someone talks about buying or selling there home. No matter what state one lives, the location of your home is paramount to the resale of your existing home. One thing that one must always remember in purchasing a home, you make your money when you purchase the home, not when you sell it. Always remember, Location, Location, Location in any home purchase.
First and foremost, as a home buyer, your only opportunity to have a choice in location is at the time of purchase. As obvious as this fact is, it is forgotten or ignored by the average home buyer way too often. Buying any property be it either real or commercial. If the property is not well located for its purpose, it is a mistake that usually manifests itself at the time of sale. You need to educate yourself prior to any home purchase.
- Remember, at the time of sale, location cannot be affected by the seller except as a function of price. As an example, a certain style and model of a house will sell for 5% to 10% more in the interior of a subdivision that the same style and model located at the edge of the same subdivision backing to a 4 lane highway. So why do consumers buy the house backing to the highway?
- As in many purchases, emotions play a large role, especially a house that will become a home. Builders will generally maximize the financial benefit of developing a division of land by building as many homes as possible on that land, building on the lots backing to that highway. This is done for reasons of profit, and is not inherently good or bad. There is no good reason why a consumer should buy a house that is located next to our proverbial highway, but many consumers do just that. They do so often because of poor or no advice. It is very important to have the services of an experienced professional real estate agent to provide guidance when purchasing any home, but most especially a new builder home. All of the builder incentives in the world will not make up for that poor location when it comes time to sell.
- The home market has price fluctuations just as any market. The poorly located home purchased at the height of a market can become a nightmare when trying to sell at the bottom of the market or anytime.
- A consumer should always perform an independent investigation of any undeveloped land in close proximity to their “dream” house. Do not rely on anyone’s statements regarding future land use. Due diligence performed by the buyer with school districts and other governmental entities will provide great peace of mind as the decision to purchase is considered. It is your responsibility to complete the research on what or where one purchases this home. You are the one at risk and will do the best job in this research. Don’t count on family or friends in this decision. Do it yourself for best results with the aid and support of you professional real estate agent. Always consider what is provided by your local government. Such as services, water sources, transportation corridors, shopping locations, schools and houses of worship when buying. Check out any zoning changes for the area as a new shopping center or highway could go up after purchasing this dream home. Although these items may not be important to you when you purchase, they will almost always be important to the future buyer of your home.
Remember, the only time that a home buyer has influence on the location issue is at time of purchase. Due your due diligence before you purchase the most expensive purchase of your life. Contact your real estate professional for help in making these decisions.
