In today’s transient society, most people don’t live in the same place for the length of a 30-year mortgage; in fact, the average Atlantan homeowner lives in a home for only 14.7 years before selling, and many sell much sooner than that. For that reason alone, one thing you should be thinking about when considering a home in Atlanta is its resale value — how much of a profit you can expect to make when you sell. This city is a growing metropolis with a dynamic housing market, so let’s look at five of the most common factors that can affect Atlanta home resale value.
1. Updates and Renovations
There are many types of renovations, updates and upgrades you can do to a home to boost its value when putting it on the market. Kitchens, bathrooms and outdoor spaces tend to offer the greatest return on investment for upgrades since these are what buyers tend to look at first. Conversely, letting appliances get dated or failing to replace old carpeting can reduce your home’s resale value — or at least make it more difficult to sell in general. Adding popular amenities like energy-efficient upgrades or Smart Home Technology can also boost home values.
2. Number of Bedrooms and Bathrooms
As a rule of thumb, more bedrooms and bathrooms equal higher values. If you can add an extra bedroom or bathroom during the time you own a home, you can usually expect a significant boost in price.
3. Property Damage and History
If your home has developed a serious problem requiring major work, such as termites or a cracked foundation, these can have a negative effect on your resale value, especially if you leave them unrepaired (since the new owner will have to assume those costs). Likewise, if your home has been subject to natural disasters like flooding or mold, this negative history can weigh on your resale value.
4. “Middle-Aged” Homes
New constructions and historic structures both tend to sell well — the former due to space and amenities, the later due to “charm factor” (especially if it’s restored and well maintained). However, there’s a sort of “soft zone” for homes that are 30-50 years old — homes that have dated appearances or odd layouts that don’t fit well with modern living — that tend to sell for less than their comparable counterparts.
5. Location
Many neighborhoods in Atlanta today are being revitalized and are seeing a new surge of popularity, which means homes in these neighborhoods tend to have excellent resale value. Buy in one of these “hot” neighborhoods and you are likely to make a decent profit on your home within a few years. Neighborhoods already seeing spiking property values (besides mainstays like Buckhead) include Cabbagetown, Midtown, Morningside-Lenox Park, Old Fourth Ward and other neighborhoods close to the Atlanta BeltLine development.
If resale value is important to you as a home buyer in Atlanta, it’s best to work with an experienced agent with plenty of field knowledge of the best neighborhoods. To learn more, call Atlanta Fine Homes Sotheby’s International Realty at 404.948.4812.