Finding Hidden Value

 

Want to get the most house for your money? Here are some guidelines for buyers:

Look for that special little enclave inside an expensive neighborhood.

Home buyers have long been encouraged to seek the least expensive house in the most expensive neighborhood they could afford. This is because property values in that area will rise more swiftly than those in a low-cost neighborhood. In fact, the value of the land could eventually outstrip the value of the building.

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Search for a home with extra land that could be sold separately.

Do you have your eye on a nice neighborhood where the houses are attractive, but years are quite small? Yet within that area, you’ve located a property featuring atypically larger grounds? The chances are you’ll pray a premium for the extra land. Still, that premium could be less than the true value of the home if zoning laws let you divide the land into two pieces and sell one portion.

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Look for a house with cosmetic blemishes that cost little to clear.

A home may be unattractive in ways that are surprisingly easy to cure. For a small sum, you can redo the wood surfaces of worn kitchen cabinets, worn countertops, and beat-up bathroom vanities and paint the front door. The trick to finding hidden value in a home is to distinguish between readily solvable and monstrously demanding home renovations.

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Recognize the importance of subjectivity in housing choice.

Some agents point out that spending too much time bargain-hunting can waste your energy. They urge buyers to avoid any quest for hidden value that causes them to be blinded to their personal housing preferences. Looking for a house is a very individual quest. Don’t focus on the bargain at the expense of finding what you want.