Selling your home is different, of course, from trading stocks, but some of the same principles apply. We all want to make a profit from our investments. So, the old adage, “Buy low. Sell high” works. While it isn’t always true that your home will appreciate in value, it is generally the case.
In fact, there are some incredible markets where homes may appreciate in value far faster than we would ever have imagined in the past. Take California as the best example. Homes may actually double in value by the time you’re ready to sell, especially near high tech job markets. What a deal! Some families, tired of living in these overpopulated areas, are selling their homes and moving out. Some choose to move to much more rural areas where they can buy just as much home for much lower. This is more of a case of selling high and buying low.
Older neighborhoods where people bought their homes, 20, 40 or 50 years ago may have appreciated in value, as well, affording middle-aged to elderly people a fine return on their investment by the time they choose to move to smaller quarters. Perhaps the children are grown and gone and they don’t want to take care of so much space anymore. Or maybe they’re retiring and want to live in a community of others like themselves, like a condominium or even a retirement home. Financing these choices becomes much more viable if your home has appreciated.
Besides California, and other areas where high tech industries with high-paying jobs increased the property value for home selling, areas near a university are likely to sell for higher prices, too. People who bought near a university and held onto the home while the children grew up, will find that the incoming crop of young people are willing and able to pay a great deal more for these nice homes near their university and university jobs. There can be kind of a turnover as a neighborhood that used to be filled with grandparents gradually becomes a young family neighborhood again . . . with homes selling for higher prices!
Invest your home money wisely. Choose an area where you may be able to buy low and sell high.
About the writer
Sarah Mettarod is a real estate agent in California. She started her career as a bank teller and worked up to loan officer. Then she quit her regular job to sell homes and has been quite successful. You can read more articles about home selling at Home Sellings