Your home’s value is truly only based on what a willing buyer in the market will pay for your home, but every buyer is different. For example, one buyer might prefer a specific location because of a school and another may be have a specific size, layout or style as their top priority.
Here are some of the most important factors that will influence your home’s value:
1. Sales in the neighborhood
When we help homeowners determine value, we typically compare the home to similar homes in your neighborhood that have sold recently. These comparable homes (comps) cn give us a quick look at what buyers have been paying for homes likes your in the recent months or weeks.
The comparable properties are never the same to your home so we make financial adjustments for key differences. To be ass precise as possible you’d need to account for each feature that was different, and we typically need to look through a lot of comps.
Your home may be the perfect location for you, maybe close to your job or in the right school district for your kids, but when an appraiser determine how much value to assign based on the location of the house, they’re typically looking at three things;
- The quality of the schools
- Nearby employment opportunities
- Proximity to shopping, recreation and other entertainment options
These answers can influence why some neighborhoods bring higher prices than others a few just a few miles away.
3. Home size and finished space
When estimating your home’s market value, size is an important piece to consider, since a larger home can definitely impact its value.
A home’s finished space does matter when determining its value. Garages, attics, and unfinished basements are generally not counted in the square footage. Many homeowners think their home may have more value because it has an additional bedroom or two, but we find that a 2000 square foot home with three bedroom sells for approximately the same price as the same sized home with five bedrooms. Why? Because some families might like more bedroom space, where others would enjoy more living and family spaces that the additional bedrooms my be taking away from.
Additional bathrooms absolutely do affect value every time!
The age of a home does affect it’s value. A newer home will typically bring more than one that has been lived in. The fact that critical parts of the house, like the furnace and air, plumbing, electrical, the roof, and even appliances are newer and therefore less likely to break down, can provide value for a buyer.
Many buyers will pay top-dollar for a move-in-ready and updated home. If your home has the HGTV feel, a buyer will walk in, feel at home and commonly make a fair offer. Often we meet homeowners that may have a home that is in need of repairs who say “the buyers can make the updates to their liking.” This is true, and homes can be sold even if they need some updating, but we have to take into account that often more times than not, buyers in today’s market won’t make an offer at all and move on to the next house looking for something that is move-in ready. Buyer’s today just don’t seem to have the patience or the savings to make repairs and updates after closing.
We know that you want to maximize your profit when selling your home, but choosing a price higher than the market allows will always bring stress and doubt.
Knowing the factors that influence your home’s value can help you pinpoint a true market value for today’s current market. By choosing a price with these factors in mind, you will be able to make your sale and move much less stressful, and get to next chapter of your life much more quickly.