Whether you’re looking to sell your home or want to know where you currently stand within your investment, it’s very important to understand the main factors that influence your home’s overall value.
Home values change year after year and for many different reasons. In this article, we go over some of the top factors that determine the value of your home –
Location Always Plays a Significant Role
It’s no secret that location is always a major factor when it comes to home value, but what specific aspects of your home’s location are considered?
Where the home is geographically:
Homes that are closer to cities, particularly popular cities, are often valued higher than homes in rural and/or less socially and economically popular areas. For example, homes surrounded by beautiful views, modern conveniences, and popular destinations, are among the highest-valued properties in the country.
The Neighborhood:
Your home’s neighborhood also plays an important role in how it’s valued. For instance, homes with quality schools nearby, available parking, public transportation, and low crime rates are highly sought after and, for that reason, are valued higher.
Comparable Properties:
Comparable properties, commonly known as “neighborhood comps,” are also a factor at play. This indicator is used to determine your home’s value by comparing local properties that are similar to yours and how they were recently sold.
Your Home’s Age & Condition
The age and condition of your home are always one of the first and most apparent factors to consider. Older homes typically need more work, whether it be updating the kitchen and bathrooms, replacing flooring, or putting on a new roof; all of these scenarios require a considerable investment and will play a role in what your home is worth as it is.
The Size Of Your Property
The larger the property, the larger the price tag. From the general size and functionality of the home to the overall acreage being sold along with it, property size makes a significant difference in value. Determining a home’s value per square foot is one of the most popular ways to come up with a reasonable value estimate.
Having a large yard, extra bedrooms, or an office space can really pay off when you’re finally ready to sell your home.
And, Of Course, The Housing Market
Last but not least, the housing market!
Year after year, decade after decade, the housing market continues to change, and it always will. Like all things, supply and demand play a large role in the cost of housing.
The endless ebb and flow of the housing market will always affect the current value of your home. If you’re in a seller’s market (meaning there is more demand than supply), you will have a much easier time getting more for your home. In a buyer’s market, your home’s values will be subject to negotiation in favor of the buyer.
To learn a bit more about the housing market, Click Here!
Access Your Home’s Value Now!
If you’re interested in getting a comprehensive report on your home’s current value, visit our “What’s My Home Worth?” tool and simply enter your address into the search bar.
If you have questions about your home’s value or would like to speak with an experienced realtor about listing your home on the market, contact Key Realtors today at 281-454-4500.
