These Important Factors Affect Your Property Value

These Important Factors Affect Your Property Value

Size, age, condition, location, the economy, and interest rates are factors that can affect your home’s value. If you are considering selling your home, it is important that you understand what determines property value so you can ensure that you get the most out of your asset. We have noted the main factors that affect your property’s value, and questions you should ask yourself.  

Location | In real estate, we always say, “location, location, location”, because it’s true. Location has one of the largest effects on your property’s value. Remember that a location that works for you, may not work for others. An example is that you may not have children and not know how the local schools are rated. Is shopping and entertainment easily accessible? How long are commutes to business centers? 

Size | While not the be-all-and-end-all, size is a determining factor in property value. Square footage plays a major role in home prices. Usable space is valued more than unfinished spaces like garages, basements, and attics, that are often tacked onto the total square footage listed. 

Comparables | How is the neighborhood? Are the homes around you being well maintained? If not, it becomes a drag on the desirability of your street and home values there. Your neighbors are critical. If other homes in your neighborhood are being highly sought after by buyers, then you will likely benefit from this popularity. “Comps” look at homes in your area that have sold within the last twelve months. REALTORS® and appraisers rely on comps when estimating how much your home is worth. 

Age | A home’s age is an essential detail when it comes to a home’s value. Buyer’s looking at older homes have to do some math, and try to calculate when the home’s major systems may need to be replaced or upgraded. Homes less than ten years old can command more money because buyers have more confidence that repair bills shouldn’t be on the immediate horizon. 

Condition | If you have the time and resources, it might behoove you to make any necessary repairs and upgrades before you place your home on the market. This will maximize the chances that it will command a higher price. Consider the cost of improvements as an investment. Your REALTOR® is a terrific resource in this case. They can suggest what improvements will add the most value to your home. Remodeling Magazine found that garage door replacements, stone veneer additions, and minor kitchen remodels can pay off when selling your home. 

The Economy | If potential home buyers feel insecure due to the economy, they may decide to delay their purchase. Or, they may be looking for bargains. The home market is really about supply and demand. Fortunately in today’s market, inventory is down and demand is up. It is a perfect time to sell. 

Interest Rates | With our current low interest rates, it is an incentive to buy. First-time buyers, move-up buyers, all will pay less with these mortgage rates. Conversely, as the rates rise, there will be fewer buyers because it is more costly. As demand dips, so will home values. 

If you want to get an idea of what your home is worth in today’s real estate market, you can contact us to be connected with an experienced REALTOR®. They will create a Comparative Market Analysis (CMA). Another option is to use a house price index (HPI) calculator, which uses information from mortgage transactions over time to estimate your home’s value. Armed with this knowledge, you can make adjustments to get the maximum value for your home when it is time to sell.

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