Curious about your home's value in a decade? Keep on reading as we dive into the factors that influence your house's worth in 10 years
The promise of future equity is the draw for many people to purchase homes. So, after a few years of challenging homeownership, it’s natural to wonder how much your investment will be worth later on.
You might wonder: how much will my house be worth in 10 years or more?
Both current and future home value depends upon external factors, like the current housing market, and ownership factors, like how much you update and maintain your home. Let’s take a closer look.
First, let’s unveil the ingredients in the recipe for calculating your home value. Your home’s future value will be most influenced by:
Start by identifying the current value of your home. This can be from a recent appraisal or purchase, but the easiest method is to check with a few online home valuation calculators and average their results.
Next, you need to estimate an annual rate of appreciation. A 2019 report showed that nationwide home appreciation averages 3.8% per year in the United States.2 With the sharp increases in the intervening years, a reset to 4% is realistic for calculation purposes—or you can plug in a more localized growth percentage (check with the Realtors’ Association in your state or city, or use the FHFA House Price Calculator).3
Plug these numbers (current property value and the appreciation rate) into a Future Value Calculator, set the period to 10 years, and you’ll get at least an idea of how much your home will be worth in 10 years.4
Based on the number you get, you may find yourself considering: Should I sell my house now or wait?
Sure, much of your home’s future value depends on external factors outside your control. But you can influence your home’s value in some ways.
Follow these four steps to keep your home attractive to a potential buyer in the future.
Keep your property in good condition, both inside and out. Get systems and appliances serviced promptly and follow a home maintenance checklist. You can also start with the guidance in a manual prepared by a thorough home inspector.5
Don’t let two decades pass by without reconsidering that family room wallpaper or finally finishing your basement. In addition to general maintenance, make conservative, well-researched decisions on enhancing your home through useful features, added finished square footage, and contemporary cosmetic updates. Exterior enhancements such as landscaping can also go a long way in increasing curb appeal. Not only can these enhancements attract future buyers, but they also increase your home’s value.
Your home is your castle, and you should enjoy living in it. With that being said, consider future property value impact as you budget your time and money over the years, especially if you plan to customize a home to your unique style. While you may dream of reconstructing the Captain’s bridge of the Star Trek Enterprise in your family room, your future selling agent might advise against it.
House prices in the U.S. increased over 18% in 2021—a steep jump on the Freddie Mac House Price Index record.6 The rates of popular cities and destinations rose even higher, and listed properties entered bidding wars from buyers clamoring for limited-inventory homes amidst extremely low interest rates.
If economic or local conditions change quickly, how prepared will you be to take advantage of an opportunity? Stay up to date on real estate market changes that may impact your home value in either direction. Following the steps above while monitoring market conditions can help you make informed decisions about your home.
It can be difficult to time an exit strategy from your property when the decision affects your wealth and security and provides a roof over your family’s heads. If you want to capitalize on your home equity now, consider a sale-leaseback.
Instead of a traditional listing (the for-sale sign in the yard followed by a fleet of moving vans), you can separate the timing of property sale and home relocation.
With Truehold's sale-leaseback, we’ll buy your home at a competitive price and you can still remain in your home as a renter. You’ll sign a lease at closing that includes the right of occupancy based on an agreed-upon rent rate with a 6-month minimum stay.
Ready to learn more? Contact us today at (314) 353-9757 and an advisor will reach out to share more about the Truehold sale-leaseback process.
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