8 Factors That Affect the Value of Your House
Selling your property is a big step. You’re probably anxious about the price you’ll get for it and the time it might take for you to sell it. Before selling on the market, it’s important to know your options first. Is it possible to sell your home without doing all the renovations? Can you get the best deal for your home without putting it on the market? And more importantly, what is the value of your house?
Here’s an overview of the factors that influence the amount of money you get for your property.
When you bought your home, it was ideal and convenient for you then. Maybe it was close to your children’s school or a walking distance to your workplace. It could even be that you loved that particular neighborhood. All these factors won’t matter much because when appraisers are assigning value to your house, they focus on three main factors:
- Nearby amenities — Are there shopping centers, recreational joints, major highways, etc. close to your house?
- Businesses — They will check if your area has employment opportunities and whether businesses are thriving.
- Quality of schools — The better the school district, the higher the valuation.
The location of your house has a profound effect on how much your house is priced, and in some cases, it outranks size.
Older properties tend to have outdated features, and any upgrades can have a significant impact on the value of your house. There is, however, a catch: it’s all dependent on how “expensive” your home is.
For instance, remodeling the bathroom or kitchen will have a bigger impact in a fairly affordable home while adding luxurious features like a pool or hardwood floors will increase the value of an expensive house.
Increasing the number of rooms or renovating your exteriors adds on a curb appeal that increases your home’s value. A spruced-up garden on its own can increase your home’s value by up to 20%.
3. Age and Condition
Newer houses are generally priced higher because buyers are more willing to pay high amounts for them. The reasoning is that newer houses don’t require much renovations or repairs, and their structural integrity is uncompromised, making them a worthy investment.
The condition of the house matters even more during valuations. Buyers would rather buy an old property that is in good condition than a house that will cost them thousands of dollars in repairs.
4. Real Estate Comps
Real estate comps are properties in your neighborhood that are comparable to yours. They are one of the best indicators of a home’s valuation and have high levels of accuracy.
For instance, if there are five 3-bedroom houses in your area (similar to your home in most aspects) that have been valued at $550K–$750K, there is a very high chance that your house will also be valued within the same price range.
Real estate properties can be compared in terms of:
- the number of bedrooms
- type (whether it’s a condo, multi-family, or single-family house)
- renovations needed
5. Economic Indicators
What are the prevalent economic indicators in your location?
Economic factors have a lot to do with people’s ability to buy a new house. If the country is in recession and the unemployment rate is high, few people will be able to invest in the real estate sector. Subsequently, property values will drop.
In a situation where the economy is booming, purchasing power will be high and most people will be open to the idea of owning a home. This will result in a demand increase for houses and ultimately high prices.
6. Home Attributes
The size of your home and its usable space are important elements in home valuations. Bigger houses tend to sell for more, but most valuations are usually in terms of price per square foot.
Garages and basements are often not considered usable space, so if your home is 3,000 sq ft and the garage is 500 sq ft, your livable space will be considered 2,500 sq ft.
Bedrooms and living areas are usually given the most consideration.
This valuation method can be profitable if you have a big house in an undeveloped neighborhood.
7. Local Market
Your local market is determined by the number of people selling properties against the number of buyers. There are two types: a buyer’s market and a seller’s market.
If there’s a high number of people competing to buy few homes in your area, you are in a buyer’s market, and the price of your home is likely to skyrocket. A seller’s market is a situation where many houses are being sold but there are only a few buyers. This often results in low valuations.
8. How Quickly You Need to Sell
Sellers that want to dispose of their property quickly often get low prices for their homes. But having your property stay on the market for long also affects your home’s value, and you may end up selling for less.
Get the Best Deal for Your House!
The process of selling your home is both stressful and frustrating. Navigating the real estate market as a homeowner can be difficult, especially if you put up your property on the market. How long will it take for you to get a serious offer? Will you have to lower the price further so that you can quickly sell the property? The uncertainty is too much!
The good news is that you don’t have to go through that overwhelming process. Our goal is to help you sell your home, either directly to us or another buyer, within the shortest time possible and that you get the best price for it.
This is why you should contact us today for a direct quote and get the best deal for your home!