Everybody loves their home. For some, it’s their safe haven and a place of comfort; for others, it’s land that’s diminishing in value over time, and they want to preserve it. The factors that affect home value usually vary from person to person. But there are a few things that most people pay attention to when accessing the worth of their beloved space. Read on to know what these factors are.
Essential Factors that affect home value
First and foremost is the location. Every realtor, neighbor, sibling, or relative will tell you that location is everything. Why is that? Suppose you reside in an area with parks, less noise, a cleaner neighborhood, and easy access to shops or a supermarket. In that case, you’re living in the ideal place—locations like these usually surge in demand for long periods due to their feasibility and easy access to amenities.
Moreover, if your house is located near any tourist attractions or is in the center of the city, the value increases over time and impacts the resale value. On the other hand, home values may diminish with time if the local infrastructure deteriorates or basic house supplies like gas and water become poor. A solution for this would be to renovate and improve your condition, which can also contribute to a limited extent. Hence, location is one of the first factors affecting your home value and should be considered the most important one.
Another key factor that affects home value is the comps. When doing property valuation, neighboring properties should also be assessed. Comps refer to comparables, which means comparing your property’s characteristics with others in your area.
This can be done by researching houses that have been sold before yours and finding similarities with your home and ways in which it is better in terms of location or features. This can guide you in setting the right price for your home when wanting to sell and setting an affordable price that is rational for potential buyers. Consider this, a bigger plot that was renovated recently has a bigger garden, and even a backyard. It might be sold on the market a few thousand dollars above the price you had in mind for yours. This seems logical for a house of that size, considering its features. However, it may not be suitable to compare with when you’re setting the price for your home due to its additional perks.
Are any renovations done?
Renovations are the biggest and most crucial updates that build your home value. After all, putting in all that hard work, time, money, and other resources should pay off in the future, when it’s time to sell. Keep in mind the cost for all your renovations and upgrades, be it the extra room you made on the terrace or the additional garden, are contributing to the house value. However, it is true that some upgrades may be less significant than others.
For instance, you added wooden flooring for a more classic look but used an average-quality raw material that might not be sustainable for too long, so the buyers may not want to pay too much above cost. But improvements like an additional bedroom or bathroom can relatively add to the value.
While this factor may not be an attraction big enough for everybody, it surely is one of the factors that affect home value, and it does impact decision-making for quite a few homeowners. Schools may, in fact, make or break the value of a house, especially if it is a densely populated residential area filled with families.
Prospective buyers who are family people are usually looking for an ideal place that is close to schools for their own convenience and can be willing to pay a higher price considering this factor. Did you know that a house which has public or private schools nearby can lead to making more money even if it is sold a decade later?
Present Condition and Age
It almost sounds like we’re talking about a patient in the hospital, but we’re talking about an actual house. Of course, anybody looking to view your house is first going to judge it based on its outlook, how well-kept and up-to-date it is because appearances matter greatly. A house kept in good condition is more likely to sell at an exponentially greater value than one which has not been maintained or taken care of. Even if you have a house that has been in the family for generations but has strong foundations which have been kept up with,it can be sold at a good price compared to one which was built more recently but lacked the upkeep and property inspection by the current homeowners.
Lastly, economic factors play a role in setting your home value. If the housing market is struggling and prices are at an all-time low, it’s probably best to avoid selling your home at the time and wait for better economic conditions because selling at such a time may lead to a significantly lower valuation and there’s not much you can do about it due to uncontrollable factors such as economic uncertainty. An ideal time would be when unemployment is lower, and wage rates are seen to be growing. During this time, keep a check on the price appreciation of houses in your area and decide the right time to sell.
Conclusively, all the necessary factors that affect home value have been mentioned above for you to keep in mind whenever deciding to sell your house or buy a new one. When going for purchasing a property, it is better to opt for reliable names in the industry like Chapal Builders. The projects under their name ensure that you get everything that is totally worth it and your house will hold its value even after years. Therefore, choose wisely, so that your hard earned money is invested in the right place.