Greetings from the Vermont Mortgage Company! As always, we hope you’ve had a pleasant weekend and were able to enjoy the gorgeous weather on Easter Sunday!
Our homes are probably the most valuable things we own. But how is that value calculated? There are a lot of factors, some of which you may not consider when buying a home. In this blog we’ll delve into how your value is calculated, and what factors greatly increase your home appreciation.
To begin, one must find out what a house is worth. Often a home buyer will use an appraisal to determine how much a house is worth. This is to determine that the value of the house matches the loan amount. A qualified appraiser will visit the home and look at a number of things:
-Size, age, and condition of the house
-Value compared to nearby houses
-Possible areas in need of renovation
After this is determined, you will have an official value of the home. But even though you’re still in the process of buying the home, you should also keep in mind something else: maximizing appreciation for when you come to sell the house. This is an important thing to keep in mind for the future.
Again, there are several factors that pertain to appreciation. There are also many things that one can take into account in order to make sure you have the most house appreciation when the time comes to sell. Currently in the market, these are the highest appreciating assets for a property:
-Smaller houses: For baby boomers and millennials alike, smaller houses are becoming more popular. These appreciate the most over time, compared to large houses. 1 or 2 bedrooms and a 2 car garage are also the golden amount for better appreciation.
-Open Floor Plan: Buyers are loving more open homes. High ceilings, large windows and more space are highly sought after nowadays.
-Modern Design: Simple modern designs are now the most popular and highest appreciating architectural style. Styles like Victorian or Colonial may still be popular with the history buffs, but won’t see as much.
-Proximity: Houses that are closest to public transport hubs such as train stations and bus stops appreciate highly, as many new home buyers are more likely to take public transport than cars. Being closer to good schools also helps with appreciation.
-Location: Probably one of the most important aspects of a home is the location and view. The views with the most appreciation are parks, as many home buyers like being near communal spaces. Luckily for Vermonters, views of a lake and mountains also appreciate a lot.
We hope this blog has been informative to those thinking of starting the home buying/selling process! We want to make sure you get the most value from your most prized possession! If you have any questions about these, or want to get the process started, give us a ring at 802-863-2020, or visit our website!