How to know which homes for sale will appreciate the fastest

Published 7:00 pm Wednesday, March 14, 2012

Given the recent decline in home values, more people than ever are wondering what they can do to ensure the home they buy will hold its value. When you’re searching for your dream home, you’re probably looking at things like the number of bathrooms, how the kitchen is configured and the size of the yard. While the tangible aspects of a home will greatly affect a home’s potential for appreciation, you’re also probably aware that the brick-and-mortar specifications are only part of what determines its value.

Apart from the home itself there are other things to consider such as proximity to the workplace and other nearby amenities, as well as the quality of schools if you have or plan to have children. These types of more subjective criteria factor in to the prices of homes for sale, and of course, when it comes time to sell your home, you’ll want to make sure you’ll be getting a good return on your investment. In order to do that you have to look beyond the home.

Get to know your perspective community

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If you’re moving within your local area, it makes sense to spend some time in the communities where you are considering moving. Scouting neighborhoods for clients before deciding which homes will be the best investment is a common practice among real estate agents. By becoming familiar with a community, you’ll discover whether it’s a place where people enjoy living, and get a feel for whether or not it’s your kind of neighborhood.

But if you live in Nevada and are keeping an eye on the new listings in Texas because you are planning to relocate, it might not be possible to do all your scouting in person. Fortunately, there are other things to look at that can help paint a picture of your future neighborhood.

Spotting neighborhoods with appreciation potential

Whether you’re looking close to home or far away, here are a few things to consider as you look for to find a home you’ll love and that will appreciate in value over time, courtesy of real-estate listing service Homes.org:

* Do some searching on the web to check out amenities and community programs within your community. The Community Resources section on the U.S. Government website is a great place to start.

* Are businesses investing in the neighborhood? Check with your prospective community to see what type of development is occurring, or monitor the local papers. It’s a good sign if employers and retailers are looking to locate in your community.

* Does the city help make your neighborhood more attractive? Are streets well-maintained? Are nearby parks accessible and kept looking nice? Are activities and programs available for residents to enjoy? Attractive and accessible public places can help your home maintain its value.

* Does your neighborhood have a homeowners association, or other community organization? It’s a good sign if members of your community are active in supporting your neighborhood and concerned about improving it.

* It may be a red flag if a neighborhood has low home-ownership rates and high foreclosure rates. However, if you have good information that the community is making a successful effort to revitalize the neighborhood, you may also be able to get a good price on a home in a neighborhood with a future.

When it comes down to it, you want a place that feels like home. And chances are if you feel good about your neighborhood, so will others if it comes time to sell your home.