But given the stock market's recent volatility, homes will likely become a more attractive investment option, said John Piper, CEO of the Greater Rochester Association of Realtors. A host of factors affect home appreciation. Purchase price, utilities, school district and municipal services all determine how much your home will grow or shrink in value. The health of the local economy plays a role, too. In the long run, it pays to inquire about those aspects before buying a home, Piper said.
Some home improvements can pay off.
A remodeled bathroom or kitchen will add more value than a new family room or living room, Yellen said. Yellen also recommends that homeowners invest in periodic appraisals to keep abreast of their property's worth. Owners in some areas receive multiple purchase offers, often above the asking price. Locally, Brighton and Perinton have been such hotbeds. On the whole, the days of selling your home for a multiple of what you paid are over, said Sal Prividera , communications director for the state Realtors association.