What Makes Your Home Valuable?   by Barry Magee

in Real Estate    (submitted 2012-02-04)

If you are considering buying a new home, or trying to estimate the value of your existing home, there are a number of factors to examine. Certainly, there are the typical issues, such as the condition of your home, its location, and the local real estate economy. However, there are several additional items to take into account.

Where does your lot face?

Many people would rather purchase a home in which there is the greatest potential for sunlight. Therefore, they look for lots in which the back yard receives southern or western exposure. Having a yard with plenty of sunshine allows for a greater variety of garden plants, as well as the possibility of more sun coming into the home.

Can you find a corner lot?

Corner lots are often valuable assets, especially if they are located on quiet, low-traffic streets. You have more opportunities for attractive landscaping, as well as play areas for children. However, corner lots may present a few disadvantages. There will be more sidewalks to clear in the winter. A corner lot on a busy street might deliver twice the traffic. Corner lots are worth investigating, as long as they are in the kind of neighbourhood in which you can enjoy their benefits.

What size is your lot?

If you are in a community that has been designed to offer pie-shaped lots, you may want to consider buying a home with this type of lot. With a pie-shaped lot, your back yard is larger than your front yard. These lots cost a little more, as you are paying for extra land. However, you will obtain the benefit of extra space, as well as more privacy from neighbours.

Do you want a walk-out lot?

Some walk-out lots can lead to higher home value. They are attractive, and you have more options with regard to your basement. Other walk-outs can affect your privacy, as there will be more in your home for neighbours to view. Also, lots on very deep slopes can make it difficult for children to play in the back yard.

Are you near green space?

Homes whose lots back into green space are always desirable. Not only is the land a visual benefit, but the green space provides privacy. These lots cost more, but will likely do well at resale time. Before buying a home that backs into a green space area, be sure to research any restrictions regarding the types of fences you might need.

How close are you to power lines?

Whether or not proximity to power lines causes health problems is not the case here: if your home is located close to a big collection of power lines, it might be instantly eliminated from consideration among potential buyers.

What are the restrictive covenants?

Although restrictions can be excessive in many communities, there is almost always a need for some sort of regulation regarding the size and appearance of homes. Rules should also be in place regarding the types of fences that can be built. Communities that allow any type of home to be built run the risk of lower resale value when streets are cluttered with mismatched houses of varying sizes.

The absence of such protection may leave prospective buyers to speculate about the overall quality of a new home. Companies that provide and execute home warranties must approve the products of builders and contractors. If a new home does not have a warranty, buyers may be skeptical about the builder's reputation.

While home warranties cannot protect against every issue that might surface with a home, they offer the benefit of convenience. Instead of having to contact a multitude of manufacturers or contractors, consumers can call one number to report a problem. The home-building industry is filled with contractors and tradespeople that are in business one day, and close their doors the next, often leaving homeowners helpless regarding repairs and unfinished projects. A warranty can protect consumers from problems that arise from companies that no longer exist.

Additionally, the absence of a warranty might inhibit a prospective buyer's ability to buy a home. A number of lenders refuse to provide mortgages or insurance on dwellings that do not offer warranties. This situation could result in the automatic elimination of a home from a buyer's list of candidates.

New-home warranties are far from perfect, but they offer the benefits of convenience and the ability for people to obtain the mortgages they need.

About the Author

Barry Magee - http://vancouverrealestatelink.ca/mackenzie-heights/