It is a common misconception that custom homes do not and cannot appreciate in value. Due to the custom features and one-of-a-kind design of the home, it makes the re-sale value of your home less appealing to a buyer whose custom needs were not taken into consideration when constructing the home. The depreciation of a home over time is hard to avoid, especially in a custom home. However, there are a few things to keep in mind when it comes to limiting depreciation and maximizing the overall value of your home.
Location- Choosing to build your home in a prime location is imperative. Homes with water access, within a great school district, and a good community can help your home appreciate in value. Building a home in an up and coming community can be daunting. However, if you are savvy enough to find a location in a soon to be popular location, the value of your home will more than likely increase.
Quality- A home built with the highest quality in mind will ensure that it’s value will remain constant. At Dreamcraft we use the highest quality products to ensure that the customer will not need to do renovations in the future because of the home lacking durability. When cheap products are used to build a home, home owners will eventually need to renovate certain areas of the house. Building with quality in mind from the beginning will save you money in the long run.
Updates and Changes- Nonetheless, all renovations do not have to be costly. Making small home improvements over time will ensure your home stays up to date. For example, changing up the paint color or adding additions to a backyard deck can help in the smallest way. Since a custom home is built with your custom needs in mind, small home changes will ensure that the custom features are not too overwhelming for potential new home owners.
Curb Appeal- The overall curb appeal of your home is essential when listing it on the market. First impressions in real estate is critical as it can either lure potential buyers in, or turn them away from possibly buying the home. Up-to-date landscaping and exterior home care is one of the easiest ways to achieve a great first impression of your home. Although your home is custom, the exterior upkeep and landscaping is not necessarily custom and can attract more potential buyers.
Inflation- Inflation is inevitable over time in the real estate industry and can benefit the re-sale price of a custom home. When interest rates are low and building/buying a home is more affordable, there is a natural increase in the demand of homes. If that home supply remains constant over time, home prices will increase as a result.