Looking for the best return on investment on the home you’re buying? Consider these factors, which Realtor.com identified by analyzing millions of sales nationwide:
1. Small Size. Over the last five years, homes under 1,200 s.f. are favorites of retiring boomers and first-time buyers’ and have appreciated by an average of 7.5% per year – While homes 2,400 s.f. or larger have risen just 3.8% per year.
2. Fewer bedrooms. The more bedrooms a home had, the less it appreciated since 2012. Homes with one bedroom increased by 7.2% per year; those with 2 bedrooms 6.6%; 3 – 6.3%, 4 – 4.9% and homes with 5 bedrooms 4.3%
3. Open floor plan. Having an open floor plan led to an average 7.4% appreciation per year. Less desirable? Granite countertops (2.5% annual appreciation) and stainless steel appliances (3% annual appreciation).
4. The right amenities. Homes with patios increased in value by 6.8% annually, while those with hardwood floors grew 5.7% and those with fireplaces 5.3%
5. Homes with views. Homes overlooking a park increased 7.9% annually; those with mountain views 5.1% and those with lake views 4.9%.
6. Modern/contemporary style. Newer trumps older in architectural style, with modern/contemporary homes rising in value by 7.7% per year, followed by bungalows (6.5%), traditional (5.6%), ranch (4.5%), Craftsman (3.7%) and Victorian (2.2%).
7. Two-car garages. Homes with space for two cars appreciated by 6.4% annually, vs. those with one-car garages (6%) and those with three-car garages (just 3.8%).
8. Location. Homes in urban areas near mass transportation grew 8.4% in value per year. Those near good schools increased by 7.2%, and those near shopping by 6.5%.