When anyone wants to sell a home, the first thing they think about is how much value does it possess as this is going to help determine the sale price. It also means that home sellers have to set aside their personal attachment to the property. This cannot be factored into the sale price, and it is often a mistake that many new home sellers make.
The 10 Major factors that Affect the Value of Your Home
- What The Property Market is Doing
- The Neighborhood
- The Value of Similar Homes in the Neighborhood
- The Quality of the Neighborhood
- The Amenities
- The Size of the Home
- The Style of the Home
- Age and Condition of the Home
- Curb Appeal
- The Potential
1. What The Property Market is Doing
No matter what any of the other factors are one of the important ones will be concerning what the real estate market is doing. A buyer’s market means there is plenty of completion. A seller’s market means that there aren’t too many houses similar to their meeting buyers needs. Also, conditions are right for house buying. Such as low mortgage fees and a strong economy.
If it’s a buyer’s market then they potential buyers are going to scrutinize the houses of interest to them more intensely. As they have options to compare to other home sellers.
If it is a seller’s market, then the pricing can be higher without having to be as concerned about the other metrics that play into the value of the home.
2. The Neighborhood
Some are of the mind that a neighborhood will never change. But this is not a true statement. Neighborhoods can change for a variety of reasons: Some of these are:
- Property upkeep can be ignored. Which means that a lot of houses in the area that are not being maintained will detract from those that are.
- If proper bylaws are not enforced for a neighborhood, this can also have an impact on the area.
- Industrial and commercial factors can have an impact on a neighborhood. For example, if there are some industrial plants operating in what has been changed to a residential area, this could have an impact on the residential property.
- Other negative aspects that can affect a neighborhood can be power stations. Even though small in size some believe that they can be detrimental to their house. Or maybe concerned about noise.
- The noise factor is another major concern when buyers are reviewing neighborhoods.
- Traffic flow and congestion is something else that has to be factored.
Any of these issues that do not apply to the home being sold in a neighborhood is a positive feature that can affect the value of the home.
3. The Value of Similar Homes in the Neighborhood
Real estate agents will always give their clients a heads up about what homes in the area that is similar are selling for. This helps the home buyer to understand the selling prices. This can work for the good of the seller but only if the comparisons of the homes is being done properly. So the representative of the home buyers can affect the value of the home of the seller.
There is no reason if a home seller is contacted by an agent to show their home that they can’t ask the showing agent what he is using for comparisons. At least this way if the home seller is aware of any major differences that work for the benefit of the home seller these can be brought to the agent’s attention. This can work to the benefit of this agent as well.
4. The Quality of the Neighborhood
The quality of the neighborhood is not just dependent on the neighborhood status. There are other aspects that home buyers will be concerned about. For example:
- The ethnicity of the other homeowners. Not necessarily because they are racist but because they may be curious if they are moving into an ethnic neighborhood.
- They may want to know if the neighborhood is comprised mostly of a working class, seniors, or young families with children. This will help them to know if their lifestyle is going to be compatible with their home buying.
5. The Amenities
Amenities are going to be very important. Conveniences are of a big concern for many homeowners. Such as:
- Many like to be in walking distance of at least some of the most common commercial establishments they may use regularly. For example convenience stores.
- Others may be concerned about day care services nearby. Not ones that they have to travel long distances each day to drop off and pick up after school.
- They may be concerned about after-school facilities for children in working families.
Home buyers should make their real estate agents aware of what the most important amenities there are. Ones that have served them well during the homeownership. This is because buyers will probably have similar needs.
6. The Size of the Home
The size of the home adds great value to the home. Depending on the needs of the buyer. Usually, buyers will stipulate how much property they have. Or how many bedrooms are required. Normally the bigger the home, the more value it will have for the right buyer.
7. The Style of the Home
Style of the home is another big factor. Again how much value it possesses will depend on the seller preferences. Some will insist on an open concept. Others will want a home that gives them options to renovate to their taste. Usually, homes that fit in with the current trends will have more value during the time the home is on the market.
8. Age and Condition of the Home
You cannot change the age of the home to increase its value. However, you can do upgrades and renovations that will improve its conditions. These should be done with caution and only after discussing with your realtor as to what their opinion is.
9. Curb Appeal
Curb appeal presents a great opportunity for creating extra value. This is because it is the first thing potential home buyers see. If the curb appeal is in pristine condition, it creates a favorable mindset for the buyer. To the point where they may overlook minor flaws in the rest of the house. Or be willing to pass up on some of their other requirements because the curb appeal as appealed to them.
10. The Potential
Even if a home on the market is meeting all the requirements that the home buyer is expecting, they always look at potential. For example, they may:
- Consider if this is enough room to add a swimming pool to the property.
- If there is room to add a garage or workshop.
- Is there the possibility of making major changes to the interior. Such as making bedrooms bigger or installing another bathroom.
If the home seller is fully aware of what adds value to the property, then they can be well prepared for sale time. By knowing if they should make any necessary changes. Or simply by pointing out all the positive aspects to the agent who is going to be selling.