This advice is simple. Follow the city's development plans. If you already know what I mean by that, feel free to go on about your day. For the majority of you sitting there saying "Okay Jillian, what am I supposed to do with that nugget of information?", let me break it down for you. Whenever your resident city or county makes development plans, votes on policies like zoning and construction and distributes funds, the public has access to that information — you just have to know where to look. For example, here is a link to Alexandria City's website.
When our clients go to buy a home, a big motivating factor for most is the potential appreciation of the home. A home's valuation and appreciation is calculated from a multitude of factors: location, lot size, condition of that home and adjacent properties, and the general neighborhood/greater area. This last factor is what I am focusing on today.
The area you live in and its development can greatly affect your home's market value. When your city or county funds developments in infrastructure, schools, businesses, and public services, the immediate surrounding neighborhoods reap the benefits of the increased activity via their home valuation. This is because the newly developed area becomes a more desirable place to live, which attracts buyers and creates competition in real estate. This is what affects the market value of your home. And when your home increases or decreases in market value, your equity (aka the amount of your money in the home that you would receive should you have a successful sale) will correlate with the home value. In grossly oversimplified terms, the more the market value of a home goes up, the more money you can sell it for.
So, if you are looking to make the greatest profit, don't go searching for the properties that have already seen the big jump in their value. Those areas have already seen development, so you missed the boat on that one. But never fear! There are LOTS of areas in the DC Metropolitan area that could use a refresh. Some places the local governments already have their eyes on. So what you need to do, young real estate student, is to follow the funding. Buy a home in an area your local city or county has approved development funds for and watch over the years as new businesses, new jobs, new infrastructure and overall new life comes pouring into the area. And then, when you go to sell in a positive market, you will make your money back and then some!
Take Landmark in Alexandria, 22304 for example. The old Landmark Mall has now been leveled to make way for the brand new extension of INOVA Alexandria Hospital, including a state of the art cancer treatment center. This enormous development project will bring a coveted asset to the neighborhood, as well as new job opportunities. In turn, this will bring more people who desire to live in the West End Alexandria area, incentivizing businesses to move in and further fuel the local economy. And all that activity directly benefits YOU as the homeowner. Especially if you buy your home before the work is fully completed.
I know that is a lot to wrap your head around, which is why you shouldn't go about this home buying journey on your own. Get yourself a Realtor who is well informed on local ordinance activity, real estate development and an expert in negotiating the best deal for your needs. Jillian Hogan Homes is always just a text, email, or phone call away. We keep ourselves educated on different jurisdiction's development plans and are never too busy to help you find your dream home and best investment opportunity.
Til' Next Time,
Jillian
Every month Jillian Keck Hogan shares local real estate insight, advice, and more. To learn more about Jillian and her team, visit jillianhoganhomes.com and follow her real estate group on Instagram @jillianhoganhomes. Equal Housing Opportunity.
