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Appreciation & Resale

Real estate appreciation has historically kept pace with the inflation rate, making real estate an historically good inflation hedge.

First American Real Estate Solutions, an Anaheim, CA based property research firm, reports in a national appreciation study that as long as the national economy stays on it present course, most homeowners can continue to look for better-than-inflation performance from their real estate. First American tracks changes in values recorded on over 20 million homes nationally that have sold at least twice as part of their research.

RealEstate.com offers a unique look into the future appreciation of a property through a free report called the AREA PERFORMANCE REPORT. They use the following characteristics to make their predictions:

• Population
• Median Income
• Average Annual Home Value Appreciation
• Traffic Index
• Commercial Development

Visit www.realestate.com to request a report.

It is often said that the time to think about resale is before you buy. Which do you think is a better choice? A modest home in a prestigious neighborhood or a prestigious home in a so-so neighborhood? The advice of the experts is to choose the modest home because when surrounded by more expensive homes, it will pull up the value of the modest home. If the home has enough land for expansion, it could be an excellent value. As you have learned in "Due Diligence; though, you should verify current zoning restrictions before making the purchase.

Homes with unusual styles or unique appeal may be difficult to sell when it comes time for resale. Massachusetts home buyers prefer colonial and cape style homes over contemporary design. Good schools are also important to home buyers in Massachusetts.

1. Here are some additional tips for finding a home that should grow in value:
2. Look for a home that has been well-cared for by its owners. Meticulous housekeeping is one sign of that kind of care.
3. Look for a home that only needs a makeover, not renovation. If the home is in excellent condition and just needs 'cosmetics', it is a candidate, particularly if it is in a good location.
4. Buy in a neighborhood that is the desired area of the community. Some neighborhoods remain hot in all markets - try to both in those neighborhoods.
5. Choose cul-de-sacs for small children and the peacefulness that comes from being a 'dead-end', no through traffic.
6. Try to buy a house with privacy and a lot size that puts some distance between homes for privacy.
7. Try to get a home with adequate parking spaces.
8. Try to be near major traffic arteries or public transportation. Home buyers want to be near important highways and have access to shopping, restaurants, and recreational activities.
9. Avoid foreclosure properties that show the financial strain of the owner who lost the property. The owner who had difficulty making mortgage payments probably couldn't to make the necessary repairs to keep the home in good condition.