Are you curious about what your home may be worth? Read on to discover different factors that influence home value and get your free home value report!
Factors That Influence Home Value
- Neighborhood Comps: One of the most important factors to consider when determining home value are neighborhood comps, or past prices of homes that are comparable. Homes that are the same size, in the same condition, have the same features, etc. are considered comparable to the home in question.
- Location: Additionally, location is very important when landing upon a home value. Although a home may have a great location for you personally, an appraiser will look at specific things. How the schools are rated, what the employment opportunities are like in the area, and finally how close the home is to entertainment, shopping, and recreational centers are looked at.
- Size: The size of a home definitely impacts the home’s value, and the price per square foot that buyers are willing to pay is different from area to area. While the square footage is important, it’s also imperative to look at how much space is usable. In other words, unfinished basements, garages, and attics are usually not counted in the home’s usable space. Bedrooms and bathrooms are highly valued, therefore, the more your homes has, generally the higher the value is.
- Condition and age of the home: Generally, a newer home appraises at a higher value than an older home. Buyers place value upon a home that is well maintained, so taking good care of your home is beneficial to its’ value.
Additional Factors
- Updates and upgrades: Updating a home can be very beneficial for a home’s value, however, not all upgrades have the same effect. In an older home that truly needs updating, those updates can really boost the value. Upgrading kitchens and bathrooms generally is a good idea. There is such a thing as too many upgrades or the wrong upgrades and that can mean not recouping your investment on those updates.
- Market: The market either is considered a buyer’s market or a seller’s market; generally speaking a buyer’s market could mean that sellers don’t sell their homes for as high as they wanted to because buyers hold the power and there is room for negotiation due to many homes being on the market. A seller’s market usually means there are a shortage of homes on the market and more buyers than sellers. This means that sellers may be able to sell their homes for higher, as there is little competition for them.
- The economy: When you are trying to determine when the best time is to sell your home, it’s important to factor in the economy. When the economy is doing well, the housing market is generally doing well. When job growth is good and wages are high, people can afford to buy homes. On the flip side, if the economy is slow, the housing market could slow down as well.
If you are thinking about selling your home, start with a free comparative market analysis! Click here to get your free report today.
