What Factors Influence The Value Of Your Home?

The market value of your house is influenced by several factors and the most important of them is how much your potential buyers offer to pay you, and this varies according to the preference of your buyers. So here is a list of factors that can  influence your home’s value.

Neighborhood:

“Comps” are comparable homes located in your neighborhood the sale price of which can affect and influence the market value of your house. Most experts and agents rely on analyzing comps to evaluate the market value of your home. Here is a guide about finding comps;

Recency:

You must look for the recently sold houses in your neighborhood. The more recently sold, the better.

Feature Similarity:

Look for sold homes that are similar to your home in terms of features like house size, no of rooms, and house type (single story, double-story).

Distance:

Choose homes for comparison that are located near to or preferably in the same subdivision as that yours as the houses located in far-flung areas may not be a good choice for comparison.

Location:

If you enjoy the unique and ideal location of your home then you must look for homes with a similar feature. For example, if your house is located in front of a park or any public institute you are suggested to look for homes that are located in similar locales.

But, no comp is exactly similar so you have to adjust to key differences such as vaulted ceiling, scenic views, or close proximity to any educational or health institute and determine the worth of your house by keeping these key similarities and differences in consideration.

Locality:

The locality of the location of your house is the most important factor to evaluate and determine its worth. When a buyer approaches you to make a deal about buying your home, he is looking at three potential factors;

·         Employment ratio in your area

·         Proximity to different recreational spots such as parks, commercial areas, shopping complexes, and educational and health facilities.

·         Quality of education and health facilities

Home Size And Usable Space:

It is a general notion that the bigger a home is the more value it has. It is also a common practice to price the home on the basis of per square foot measurement. Though it can lead to either overpricing or underpricing of your home as compared to its market value. So it does not seem to be a reliable approach.

Moreover, while listing your home you must keep in mind that the net worth of your property does not depend upon its total area but only on usable space. Garage, unfinished basement, and alikes are not counted in usable spaces, and the contribution of such spaces towards building up the net worth of your home is very minimum. However, the trends in the preference of the type of space vary greatly and are locale-specific.

Age and Condition:

New homes tend to be of more worth than old homes and it is because buying a new home saves a buyer a lot and that too for a long duration. For example, plumbing, electrical wiring, roof, and appliances all are new in a newly built home and are more likely to stay longer without needing any repairing unlike an old home and its utilities and accessories. So note the age and condition of your home while listing it.

Upgrades and Updates:

Upgrades and updates can boost the net worth of your home, but these must be carried out according to the local demand and trends. For example, a finished basement in a certain area might not add as much worth to your home as it can in another locale. However, upgrading your kitchen and bathrooms is a tactic that can work anywhere around the globe. Similarly, you can consider adding pools or wooden floors to your home as these may increase the worth of your home manifolds.

Local Market:

No matter how marvelous your house is, its worth still depends upon the local market that whether it is a seller’s market or a buyer’s. For starters, a market is said to be a seller’s market when there is a greater number of buyers as compared to the no. of houses available. On the other hand, if the number of houses available to be sold is more than the buyers who intend to buy the homes.

So, if your local market is that of a seller you can enjoy a great profit margin. But if your market is that of a buyer then you might have to compromise on the net worth of your home and it is better to avoid selling in such circumstances and wait for the market to shift to a seller’s market.

Economic Indicators:

The economy of any country can greatly influence its housing market. For example, if the economy of a country is stagnant or is facing a downfall then there is less chance for people to relocate or change homes.

Want to know more about real estate, housing, and digital marketing? Contact us at Record Marketing.