How to Make Money on Your First Home

Becoming a homeowner is one of the biggest rites of passage anyone achieves in their lifetime, but how can one tell whether or not their first home will sell well when they are ready to upgrade? In this blog, I’ll give you some things to keep an eye out for when you begin your home search so that you don’t wind up stuck when it comes time to sell.

Let’s start with an obvious point: things like stained carpets, bright paint, or outdated decorations aren’t something you should view as a problem. If your goal in buying a starter home is to eventually make money off of it, think of your time there as an extended flip project and tackle one room every couple of months. There are tons of DIY projects (which I’ll cover in a future blog), which can be done to drastically improve the appearance of a home.

Next, think about the location of the home. Look for homes in emerging neighborhoods like downtown Greenwood where property values are expected to rise in the coming years. Also, familiarize yourself with school districts. The same house placed in three different school districts will appraise and sell for 3 different prices. It’s important to understand property values from township to township.

Finally, pay attention to floor plans. Hot pink paint is temporary, but floor plan is forever. Let me give you some examples of positives and negatives when it comes to the layout of a house. Bi-level and tri-level homes were very popular once upon a time, but are now harder to sell than a ranch or multi-level home. Tastes and trends evolve greatly from decade to decade, but these are currently not styles that are as commonly sought after. An example of a beneficial floor plan in today’s market is an open concept layout. Many of today’s buyers prefer this style because it unifies the rooms of a home and makes entertaining and socializing easier.

I hope you find these insights helpful and, if you’re concerned about making money off of your first home, you now feel more comfortable about what to look for in a starter. If you have any further questions about this topic, feel free to contact me.



Posted on January 28, 2020 at 2:58 pm
John Watson | Category: John Watson Real Estate Blogs

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