Here at Inclign we recommend that you think of your personal real estate as a business investment first and a personal retreat second. Why? Because;
YOU WILL LIKELY MOVE OUT WITHIN 6-7 YEARS
Yep, eventually life will nudge your peaceful existence and you will have to sell this perfect home. Life is not static. Things change. Though we resist it’s not always possible. So, can we use this tragedy to our advantage? Your home is part of a dynamic market that rewards thoughtful players. Even though you bought this home because the porch swing reminded you of grandma it may need more to lure your future buyer. Think like a business person, your competition is building and selling homes every day. They never stop! You have an advantage though; your house is already built (I assume). So, you only need to make nominal home improvements now and again so that when life nudges you’re ready to make a deal.
MAINTENANCE IS EASIER IF MAINTAINED
If you’re thinking this will be your “forever home”, you may put off something like roof maintenance for a time when you have more resources. After all, you’re planning to change the color of the roof anyway so why spend money on Moss-Out now? Secretly, time slips past you along with much deferred maintenance and now you find it is time to sell and the resources are busy paying for the kids’ college. You’re trying to down size but the market doesn’t appreciate the forest in the gutters or lack of drainage around the foundation. So now your home’s equity diminishes at the demands of the market. Sure, maintenance is a hassle but it’s also good business.
THE MARKET WILL NOT VALUE YOUR IDIOSYNCRASIES
Too many homes on the market have normal market potential but outsized personal character. These homes tell the story of a visionary that would create the perfect solution to their unique perspective. I too enjoy these one-off homes that beg for answers. But if the answers don’t satisfy the markets need, it’s probably a waste of resources. Ok, there may be a time to add that expensive bomb shelter in the crawl space, preparing for possible nuclear war, but as a financial strategy it wouldn’t be recommended. Not to discourage college color scheme visionaries, just know when the time comes to move on, these can limit the number of buying customers and the equity you spent on the hidden water slides, means a smaller down payment on your next home purchase.
THE MARKET HAS CERTAIN DEMANDS
The description above does not mean that you shouldn’t invest in your home at all. On the contrary, it means you need to invest shrewdly. Like any business, take a little time to study the market and if you’re able add things to your home that make it more attractive to your future customer. Remember to keep your customer demographic broad as possible, this adds competition. At the same time, be irresistible, it’s ok to have a couple tasteful items that sets your home apart. Consider home improvements that yield better returns than they cost. Here some ideas; added square footage, professional landscaping, added bathroom, generally well maintained, open floor plan, fresh paint, new fixtures, updated hardware, new appliances, new flooring….
THERE IS BENEFIT IN LEVERAGING THE MARKET
If you and your fellow travelers have the will you could choose to move every 2-3 years and really ramp up the home quality you have, provided you have the income to maintain that. With market ups and downs you may have to stay in some places longer than others. If this is your strategy, I suspect you will get better and better at luring buyers into your irresistible business and both they and you will benefit.
All this does not take away from your freedom to enjoy the home as you want. After all you purchased this home to meet your particular needs not the needs of some unappreciative buyer. Or did you?…
Of course, contact Inclign to assist with your home improvement ‘business’.