The value of one’s home can vary by each case, as it depends on what the buyer finds important. Some buyers consider school districts a number one priority, where others consider location at top priority. Below, we’ll outline the top factors that influence home value factors and why they matter.
1. Nearby home sales.
Sale prices of nearby homes is arguably one of the top factors in influencing a home’s value. This is what real estate experts use to help estimate a home’s value. Comparisons can be done in a variety of ways, including a home appraisal, comparative market analysis, and more. To be precise in this evaluation, it’s important to account for each unique feature of the home.
The local market also falls under this category. An area will either be a buyer or seller’s market, and this could impact your home’s value regardless of what features your home has. It’s also important to consider economic conditions at large, as these affect a home’s value as well.
While your current home might be the perfect location for you, it may not be for everyone else. For example, maybe you’re only a 15 minute drive from work, or the location is five minutes to your inlaw’s house. But when it comes to an agent considering a home’s location, they consider three primary areas: quality of local schools, opportunities for employment, and how close the home is to nearby shopping, entertainment, and recreational centers. These factors are used to help justify a high or low price.
It goes without saying that larger homes are more expensive than smaller ones. A home’s value is estimated by price per square foot (or the sales price divided by the home’s square footage). In addition to square footage, storage and usable space is a big indicator of home value. In general, garages, attics, or basements that are unfinished aren’t included in usable square footage. The amount of usable areas like bathrooms or bedrooms are what increases your home’s value the most.
4. Age and condition.
The older the house is, the likelier it is to be in poor condition. With a newer home, you’re less likely to have issues in areas like electrical, plumbing, etc, which increases the value for a potential buyer. If a buyer senses that they’ll have to put a lot of work for repairs and upgrades, they’ll be less likely to purchase.
5. “Bonus” features.
If your home has interesting or unique features that others don’t, this could also raise your home’s value. For example, a family with four small children might consider a pool as a unique, valuable added feature. On the other hand, recently completed projects like a kitchen remodel could also increase your home’s value.
6. Interest rates.
When interest rates increase, fewer people are able to afford homes, which in turn affects how much you can sell your home for.
If you’re curious about your home’s value, contact Home Buyers Express! Starting with a cash offer can give you great insight on your home’s worth. Visit our how it works page to learn more about the process and don’t hesitate to reach out to us with any questions!