4 Signs You’ve Found a Home That’s a True Hidden Gem

Whether you’re buying your first home or your next one, you want something special. You know what all the influencers on social media say about the features that make a home perfect — which can often make it pricier.

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But you’re looking for something different: a hidden gem of a house that not only fits your budget but also offers lasting value, such as being in a cool (or soon-to-be-cool) neighborhood or having features that could benefit you later in life.

It’s easy to second- or third-guess your own judgment, especially when you’re searching for a diamond in the rough. To help you cut through the doubt, GOBankingRates went house hunting with Nikki Beauchamp, senior global real estate advisor and associate broker at Sotheby’s International Realty, as part of our Top 100 Money Experts series.

Beauchamp shared insights on how to recognize when the house you’re looking at could be a true hidden gem — perfect for your lifestyle and long-term goals, regardless of what anyone else might say.

The Neighborhood Has Thriving, Established Businesses (or Promising New Ones)

Of course, a home’s features matter, but Beauchamp wants you to also pay equal attention to its surrounding neighborhood. Are there cute little cafés or cool restaurants nearby? What about long-standing businesses that seem to have loyal followings — even if they occasionally make your wallet groan?

While the “cool factor” can be fun, Beauchamp says business activity is also a strong indicator of neighborhood stability and growth potential.

“Beyond the obvious residential elements, research what’s going on with the surrounding commercial spaces — or lack thereof,” Beauchamp said. “Have new businesses been opening? Have existing businesses been around for years or decades?”

The presence of shops that have survived for decades shows the neighborhood is economically stable and the community remains loyal — both very good signs when looking for a place to call home.

If you see a mix of new and established businesses on the street, that’s your clue that the community is experiencing balanced, sustainable growth. Since commercial development often precedes residential price increases, it could also be a sign that you should buy sooner rather than later.

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Planned Infrastructure Improvements Point to Future Growth

You’re probably used to flipping light switches or exploring attics during a showing. You may not have thought to research municipal and city planning documents for upcoming projects or new transit lines. Yet Beauchamp encourages you to consider how infrastructure projects could influence the home’s future value.

“All of these things contribute to value and matter when you sell the property later,” she said. “You should also look at what infrastructure changes are in progress or coming and how that could add value to the property you’re considering purchasing.”

If you’re wondering how to learn more about infrastructure, there are a few smart things you can do:

Check for planned parks, community centers or public spaces.Attend local planning meetings or contact the city’s planning department.See if schools are being built or renovated, which could signal long-term investment in the area.

If you spot upcoming projects, try to time your home purchase before they’re completed — and priced into the homes for sale.

The Property Aligns With Both Your Lifestyle and Long-Term Goals

Perhaps you’ve found a home with all the features you’ve been craving — a brick patio, an in-ground pool, a chef’s kitchen. Who cares if it’s an hour and a half from your job? Well, you will, after a few weeks of a three-hour round-trip commute.

That’s why Beauchamp urges you to consider whether a property aligns with your current lifestyle and long-term plans.

Ask yourself: Where will you be in the next five years? The next 10? For instance, if you’re planning on starting a family, a more modest home in a great school district might be a better buy than a larger one in an area that might require you to pay for private school. Conversely, if you expect to move elderly relatives into your home eventually, that unfinished basement could hold immense potential — even if it’s not pretty at the moment.

“It’s important to think through both your immediate and long-term goals with any potential purchase,” Beauchamp said. “You may explore a new area and realize it doesn’t suit your needs, even though it may have the ‘perfect property.'”

You’re Willing To Look Beyond Surface-Level Imperfections

Remember that old saying, “Beauty is in the eye of the beholder”? It holds true for houses, too.

“The most common mistake people make that causes them to miss hidden gems is not maintaining an open mind,” Beauchamp said. “Don’t chase perfection.”

That doesn’t mean you should accept a home with major structural issues or aesthetic problems you can’t live with. However, minor cosmetic issues — like outdated paint, old carpet or older fixtures — can keep competition low and create opportunities to build equity through renovations.

Focus on homes with “good bones”: a solid foundation, roof and layout. Remember, aesthetic updates are typically easier and less expensive than structural repairs. If you’re willing to roll up your sleeves and see past outdated details, other buyers’ lack of imagination could become your opportunity to create the home of your dreams.

This article is part of GOBankingRates’ Top 100 Money Experts series, where we spotlight expert answers to the biggest financial questions Americans are asking. Have a question of your own? Share it on our hub — and you’ll be entered for a chance to win $500.

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This article originally appeared on GOBankingRates.com: 4 Signs You’ve Found a Home That’s a True Hidden Gem

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