When it comes to purchasing a home, it's crucial to think beyond the numbers. Square footage and the number of beds and baths are important, but they don’t tell the whole story. Quality in construction, craftsmanship, materials, and design are vital factors that significantly influence the long-term value and durability of your investment. The location and type of land are critically important as well, but this discussion focuses on the physical structure of the home itself.
Knowing the features and qualities of a home that will allow it to maintain its value over the long-term will help you to make smarter investments and build long-term wealth.
The three broad categories that determine the enduring value of a home are below:
1. Materials: Durability, Function, and Aesthetics
The quality of materials used in a home have a substantial impact on how well it maintains its value over time. An older home built with solid masonry construction may have more longevity than a newer stick-built (wood framed) home. On the other hand the newer home may have superior insulation.
Original solid hardwood floors that need refinishing may be a better value than new engineered wood floors that can only be refinished once or twice, if that, in their lifetime. Countertops made from durable materials like granite, can last a lifetime and are a huge selling point for a home. Roofing made from slate, metal, and clay tiles are known for their aesthetic appeal and offer longer lifespans than the typical asphalt shingle.
While it’s not always cost-effective to choose the most durable materials, opting for high quality in areas that tend to take a beating over the lifetime of a home will enhance the overall look and feel of the home, and result in less maintenance and replacement costs over time.
2. High Quality Craftsmanship
The craftsmanship of a home speaks volumes about its long-term value and durability. When assessing a property, pay close attention to the details; If you notice floors that aren’t level, or windows and doors operate smoothly, they could indicate issues with the foundation or overall build quality.
Special attention should be paid to all parts of the building envelope. The building envelope includes the exterior walls, roof, and foundation. Everything that separates the interior living environment from the outdoors. The building envelope should provide air and water sealing, insulation, and fresh air exchange. This minimizes heat loss in the winter, heat gain in the summer, and reduces utility bills year round. Proper moisture and humidity control will also prevent mold growth and structural damage.
Meticulous craftsmanship not only ensures the long-lasting structural integrity of a home, but also enhances its aesthetic appeal, making it more attractive to potential buyers should you decide to sell in the future.
3. Functional Layout
Now more than ever, maximizing the usable space in a home is paramount. No longer are homes expected to have a living room that is never lived in! Instead, the demand for dedicated home offices, home gyms, and multi-generational housing is on the rise.
Not to mention, with the popularity of short-term rental sites like Airbnb have increased the number of homeowners who want to earn additional income by renting out a portion of their property. A home with an accessory apartment such as a basement suite, garage apartment, or separate guest house is ideal for hosting short-term guests or long-term tenants.
Homes with the greatest amount of adaptability and functionality will retain the highest market value over time.
What about a home's mechanical systems?
The electrical, HVAC, and plumbing systems of a home are critically important as well. Replacing or repairing these systems can become a financial burden if you have not budgeted for these costs. A thorough home inspection should alert you to the age of these systems and any major concerns.
On the other hand, these systems tend to not have quite as big of an impact on resale value as the other items listed above. Because most home buyers are aware that they’ll have to invest significant funds into the repairs or replacement of these systems at some point during their length of ownership, sub par home systems are not necessarily deal breakers for future buyers.
Getting the most value for your dollar
By considering the quality of materials, craftsmanship, and overall design, you can make an informed decision and sound long-term home investment. Schedule a consultation today, and let’s create your plan to find a home that aligns with your lifestyle and long-term goals.