Over time, the worth of a home will go up and down.
Normally, house values appreciate in the long term.
But, in real estate there are no guarantees.
When your home appreciates you have a larger asset to borrow against, and you'll realize a larger profit when you sell.
Property values in Lexington rise and fall for numerous reasons, so how will you know what you're investing in this year won't depreciate the day after you close?
It's imperative that you pick an agent in Lexington who knows the factors that affect local prices.
The economy is believed to be the number one factor impacting real estate appreciation.
interest rates, employment, business growth, government programs and numerous other national factors have a measurable impact on your home's value.
However, your property's value and the features that play the most significant role in its appreciation are particular to the local Lexington economy and housing market.
Access to services - Many of us decide to live in areas with the most accommodating elements for homes to grow, like a close proximity to schools and work.
So when it comes to retaining their value, these areas consistently appreciate better than others.
Recent sales - Your real estate agent should provide you with information on the recent real estate sales in the districts that you're interested in. You'll want to know average time on market, selling versus listing price and more.
The appreciation history - Is the community thought of as desirable because of its location or affordability? Have property prices gone up or down over the past 5 to 10 years?
Local economy - Is there a good blend of jobs in an area, or does it depend on just one industry? Have companies moved into or away from an area? Are local businesses hiring?
These items play a part.