Considering the Resale Value of a Custom Home
Should aspiring custom home buyers worry about future resale value?
Building a custom home is a dream for many—after all, who wouldn’t want to live in a space perfectly designed for their family’s needs? But many aspiring homebuilders are worried about future resale value.
Some people considering a custom build wonder if anyone else would want to live in the home they had built. But is that concern valid? The answer, of course, is complicated—but it’s certainly not a reason to avoid a custom build. We’ve rounded up some key factors to consider.
Location, Location, Location
Your home’s location is probably the biggest contributing factor to its future value. One of the major advantages of building your own home is that you can be picky in choosing a lot, allowing you to be strategic about identifying a location that will help your home’s value grow. Of course, the ideal scenario is to move into an up-and-coming neighborhood in which home values are on the upswing.
While you can’t time the market, certain features keep home values high. On the list to consider? Crime rates, school ratings, access to public amenities, and commute times to major centers of employment. It’s also useful to consider the general economy of the area and whether it is home to growing sectors like tech.
Time You Plan to Spend in the Home
Just like when you purchase an existing home, the time you plan to spend in your new custom build before reselling plays a significant role in your potential profits or losses. In homebuilding, like with buying any home, there is upfront spending such as closing costs to consider. There are also tax implications to selling a house quickly after moving in.
Generally speaking, you’ll want to remain in your new home for at least a few years to allow its market value to appreciate enough to cover those costs that you can’t recoup.
Avoid Trendy Design
One area in which custom-built homes can lose value is in the finishes. If a buyer goes all out on custom appliances and upgrades, but chooses them based on flash-in-the-pan trends or short-lived personal preferences, the value of those high-end finishes can be lost on a buyer with different tastes.
Generally speaking, steer clear of making a statement with things like a stove or fridge—black or stainless steel appliances are timeless, while a funky color that looks great in the context of your decor might be an eyesore ten years from now. There’s no need to be bland, but think neutral when making high-end upgrades, and consider going with middle-of-the-road or lower-cost options when you want to make a bolder choice.
Consider Features Known to Add Value
While preferences change over time, there are certain choices you can make that give a home enduring appeal. For example, right now buyers are prioritizing home offices, which is unlikely to change anytime soon.
Features that make life easier, like walk-in closets and separate laundry rooms, only continue to grow in popularity—and we doubt that people will prefer to go back to carrying their laundry down the basement stairs. When a buyer is deciding between a new house with a livable, practical layout and an older one in need of some serious renovation, the newer home will usually win out.
Custom homes can hold their value as well as any other, if not better. A few careful choices will only increase your chances of appreciation. And by working with Atmos from the start, you can expect major savings in the building process, meaning your investment will pay off even faster. Get started today!
