Relocation buyers should consider resale potential of property
Realtors often advise their clients who are considering a home purchase that it is equally important to consider the resale potential of the property.
This is especially important for home buyers with fairly mobile careers, as they never know where life will take them next, or how soon.
Dru Mims, a broker associate with Berkshire Hathaway HomeServices Anderson Properties, said that people who are relocating often get transferred sooner than they anticipate. When that happens, they usually have a fairly short timeframe in which to sell their home and move on to their new location.
“Lately, I have even seen people who have been transferred in less than a year after moving here,” Mims said. “So, I tell my relocation clients that not overpaying for a property on the front end is important.
“My advice is to pick an area that is desirable, and avoid new construction, especially in master-planned communities where they might be building for the next five years. Knowing when the construction will be completed is important, because it’s very challenging to compete with the builders when selling a property.”
When looking at areas and neighborhoods, Mims said that it’s often best for people who are relocating to consider the ones that are in higher demand. Those are usually the ones that have great amenities and sought-after schools. She said that when her relocation clients are purchasing a home, that they need to think in terms of being able to recoup their investment in the event that they need to sell it within the next nine months to three years. This is also true when making home improvements after the purchase. Mims said that home improvement dollars that are spent on the kitchen and bathrooms tend to have the best potential for positively impacting the future sale of that property. “When I am showing homes to my clients, I am always looking at it from a resale standpoint. I look at how we can market the home in a year if we need to, so I advise my clients to make wise choices on the front end. I also tell all of my clients that they don’t want to overimprove a property for the neighborhood, and I think this is really important for relocation buyers,” Mims said. Karen Sumner is a Realtor with Coldwell Banker United, Realtors. Like Mims, Sumner also advises her relocation clients to be thinking about resale when looking at properties. “When I’m looking at homes with my relocation clients, I tell them that I’m looking at resale only. I want them to buy a house that I can sell in 30 days or less, because sometimes their moves are that quick,” said Sumner.
For that reason, Sumner said that she always points out all of the negative features of a property before pointing out the positive ones. She said that she does this so that her clients will be aware of anything that could prevent a relatively fast sale of a property.
“I know what the negatives are, just from working the market and knowing what buyers want,” Sumner said. “I really focus on location, and point out things like railroad tracks, being on busy roads, school zoning and price ranges. So, for example, if a client buys a $600,000 home and then gets relocated, I tell them that this price range will be harder to sell in Cypress than in the Heights.”
Likewise, she wants her relocation clients to know what property aspects are most popular with buyers today.
“The outdoor experience is definitely something that is more in demand with buyers right now. People want pretty backyards and patios, and nice decks and rooftops. It doesn’t have to be big, but it needs to be pretty. It’s just that desire to have a spot to go home to for entertaining, or for just relaxing on your own,” said Sumner.
She also said that she knows how difficult it can be to move to a new city. There are many questions and considerations, and it is important for newcomers to be able to rely on the market knowledge and guidance of their Realtor.
“I am originally from England. We came here on a two-year assignment, and we have been here for 15 years. So, I always tell my relocation clients that circumstances often change, and they might not live in their home for 10 years. If I don’t think I can sell the home quickly when it’s time, then I tell them that they shouldn’t be buying it,” Sumner said.