Important Factors That Affect Your Home’s Value
Home values recently have been ravaged by the economic troubles sweeping America and the markets are swinging like the proverbial pendulum, but some factors will always come into play that affect a home’s value for better and for worse. Ultimately the value of a home is determined by the real estate market, and as potential buyers investigate properties, they will swiftly expand their perspective of the relative value of a diverse range of properties.
There are countless factors that can affect the market value of any given property:
Although some factors weigh more than others when determining market value, they must all be considered and prioritized properly to determine what will be considered to be an accurate market value for a property.
Location, Location, Location
As the old adage states, location is the most important factor governing the value of any property regardless of what type it may be, but more so for homes.
Regardless of a dwellings style and size, or any improvements that have been made to a home to enhance its value, location is the one thing that will always remain constant and unchangeable.
A properties proximity to public transportation, train stations, shopping facilities, schools, churches and entertainment all contribute import aspects that will determine its value on the open market. The neighborhood and surrounding area near a property also have an effect on a home’s value. People who are home shopping and may not have as much to invest or are possibly first time home buyers will many times look in the “low end” areas for a bargain.
As is the case now, when the market is flooded with comparable properties for sale, and real estate buyers are in short supply, sellers should be prepared to sell their home for less than if there was a scarcity of supply and plenty of enthusiastic homebuyers. Market conditions are paramount to establishing the value of each and every property.
The perceived value of comparable properties within the same general locality is also important. Sometimes the distance between these homes is only a few blocks, but this makes a lot of difference when setting the value. Buyers will always compare values based upon properties that have sold or are available in the local area, and rarely will they pay more for a home than one that is similar, cheaper and in a more desirable neighborhood.
As is evident by the current down turn in values, timing also has a lot to do with market conditions and pricing. The market cannot be manipulated so sellers need to have a strategy that takes into account all the current trends, as well as the other aspects that affect value.
Seasons of the year will also be a determining factor. Spring time is the best time as more people are looking to buy, and the holidays, a time when people are focused on family and giving, buying drops off. Timing when a seller will list their home will make a big difference in the amount of prospects they get, so possibly delaying a sale for a better season will yield better results.
On a more personal level with buyers, the style, look, feel and extras a property has will go towards determining its value. The age and size of a home, compared to other available properties, also falls into this category.
Overall Condition of the Property
Prospective home owners will also consider the overall condition of a home and the surrounding property when considering a purchase. Homes that have been well kept and have a beautifully manicured yard will be very appetizing to a buyer. If the inside of the home also looks great, is in good repair and feels like a great place to live, a sale is much easier to achieve, and much faster too.
If a home lacks fresh paint, carpet or draperies, buyers may start to wonder about the condition of aspects that are not as visible, electrical, plumbing, and the HVAC systems should all be in tip top shape ready to be inspected. No one wants to buy a home and have to start making repairs or refitting once they have moved in. there is little or no value in that scenario.
Upgrading a kitchen or bathroom before selling can add value if done correctly and cost effectively. Painting and replacing old and worn flooring and carpets is another fairly inexpensive treatment that will add value and appeal. Major home improvements such as extra rooms, an attached garage, or a pool can do the same, but owners just need to make sure that the improvements they make are warranted and that they do not end up with a home that is “too good” for the neighborhood and costs that are not retrievable.
Getting a fair market appraisal and analyzing all the factors listed here can help a seller develop a fair price for their property. Setting a proper and fair price from the outset will also surely determine how long a home is on the open market. Sellers who raise the price and try to assign a greater value to their home from the outset, and then find themselves lowering that price most always run into difficulties that prolong the sale.
Marketing Also Affect Value
The marketing plan that a seller and their agent choose will also affect perceived value, the number of prospective buyers, and ultimately the selling price that is accepted. The skill and expertise that go into the negotiating process will also affect the amount of money a property will sell for, and thus it value.
Perceived value, market value and the selling price are all important when a seller lists their home for sale. Knowing what other similar properties have listed for and are eventually selling for is also a major factor to be considered. Not everyone is looking for the same things when they go to buy a home, but any savvy buyer will surely check on the market values where this wish to buy and live, and a serious seller must try to meet that standard as closely as they can if they expect to sell their home in a reasonable amount of time.