Almost all homebuyers have one goal in common when they buy a home, and that is to have it appreciate in value while they own the home. This makes for a much happier time for everyone when it comes time to sell the home. Buyers always say this is a goal, but some inevitably lean towards a home where this will not happen. Sometimes they lean towards a home that may even depriciate over the years they own it. Why or how can a home do that???? BAD LOCATION! That's how and why homes will do this.
If having your home appreciate is one of your goals, then the game plan for you is simple. Buy in the best neighborhood you can, period. If you aren't sure which neighborhood or street is better than the other ask your Buyers Agent. They will be able to show you facts about sales in the neighborhoods of the homes you like, and can advise you on which home would be the best for long term appreciation. The numbers don't lie. Your Buyers Agent will be able to also advise you on what improvements are good to make and what may be too much. This way you can maximize your gains by making smart improvements to your home.
Buying in the best neighborhood you can produces appreciation based on simple economics. It's supply and demand. There's a high demand for homes in good neighborhoods, the better the neighborhood the more demand and the more appreciation. That's how it works. You are better off buying a home in a good neighborhood that needs a little elbow grease put into it than buying the biggest, nicest home on the block in a neighborhood that is not quite as good.
Whenever you have questions about location or appreciation ask your Buyers Agent. If you don't have one, get one, then ask them. Remember: Location was, is, and always will be the king of real estate.