Over time, the value of a piece of real estate will go up and down.
Home values appreciate in the long term generally.
But, of course, in real estate there are no guarantees.
When your house appreciates you have more equity to borrow against, and you'll see a greater profit when you sell.
Property values in Lexington change for various reasons, so how will you be sure what you're buying right now won't depreciate the day after you close?
It's important that you pick an agent in Lexington who is familiar with the factors that drive local prices.
Many assume that the economy is the major factor affecting real estate appreciation.
mortgage rates, unemployment, job growth, government programs and a lot of other national determinants have a noticeable effect on your property's value.
But the most significant things that decide your house's value depend on the local Lexington economy and residential market.
Location in a community - Most people want homes in the districts with the most accommodating places we go often or everyday, such as our schools and work.
So those areas often appreciate, or keep their value consistently, year to year.
Prior home sales - How long do homes typically stay up for sale before closing? What was the selling price versus the listing price? Some information can often be obtained from public records, but a good agent with access to the local MLS will usually be able to provide a more complete picture.
Appreciation history - Have home prices risen or declined over the last 5 to 10 years? Is the neighborhood thought of as desirable because of its location or affordability?
The local economy - Are local companies hiring? Have companies moved into or away from an area? Is there a nice mix of work in an area, or does it rely on just one industry? Is the mix of commercial and residential zoning changing?
All these play a part.