There’s no purchase as dreaded and as expensive as buying your first home. Most homeowners have a lot of trepidation, considering the immediate future and the distant one. Starting with what their new property will be worth in five years, they try to work out from there. Unfortunately, it’s not that simple since most homes have a price that fluctuates on the house by house  basis. If you still want to figure out whether you’ll be losing or gaining money, here are some simple things to consider.
What condition is your home currently in? Is there damage to any of the siding? How recently was the roof replaced? Go through your new home with a critical eye, and try to see what parts of your home will depreciate. If you’re unsure, you can hire a professional to walk through and tell you what needs repairs. Generally, there aren’t any huge issues with most homes, but small changes and updates can make a world of difference.
How Well Can You Maintain A Home?
Do you think you’ll be able to maintain your home or keep up its current value? Before asking yourself, “What is my home worth ?” consider if you’re willing to put in the work to at least keep it at the current price. To best maintain your home, clean your gutters often, paint your home when needed, clean inside and out, and pat attention to any changes like shifting or smells that could warn of mold.
Are You Doing Updates?
Updates add a ton of value to homes , as long as they’re carried through intelligently. Don’t waste your time updating a basement or bathroom since studies show that these updates lose money. The best updates to bring cash back into your pockets at the sale are bedrooms and kitchens. Although the kitchen is expensive to update, it’s a sacrifice that will raise your entire home’s property value.
Do You Have a Plan If The Market Fails?
Although the housing market is running on a giant cyclical loop, and houses ride that wave going up and down in price, you need to have a plan for if the market fails when you’re trying to sell. Unfortunately, we can’t always help the circumstances that make us sell, and we may get trapped in a buyers market. A buyers’ market can be stressful for homeowners because the control is outside of their hands. Buyers can barter, argue, and grift homeowners into losing money on a home so they can save some cash. Make a plan ahead of time to get stuck trying to sell in this situation accidentally.
To figure out how much your home will be worth in five years, calculate these numbers together, and decide what your home will look like in both a good and a bad market. After five years, the average home’s price shift isn’t that large without an update , so don’t be afraid to put in a little elbow grease!