6 Factors That Impact The Value Of A Home
6 Factors That Impact The Value Of A Home
A home’s value is subjective. Homeowners may believe they can get top dollar for their home, but it may not be in the condition or have the square-footage to justify a top dollar price. What goes into determining the value of a home? When determining a home’s value, there are a lot of factors in play. From obvious attributes like location and condition to less known aspects of negative events and neighbors, take a look at these six factors that can impact the value of your home:
Location
Location is everything. What aspects of a location appeal to homebuyers? Here is a couple that we have found over the years:
Neighborhood
- Walkability – Use walkscore.com to determine the neighborhood’s walkability score. The distance to local amenities is what determines a neighborhood’s walkability score. Neighborhood’s with a high walk score® don’t need to rely on a car to do daily errands. With many people forgoing a car, the walk score® of a neighborhood has become increasingly more important.
- Busy Streets – Families with children would prefer to live on a quiet street to a busy street with cars zooming by every day.
- Mature Trees – Crazy, we know – but, mature trees can boost the curb appeal and value of your home. Click here to determine the benefit of different types of trees.
- Nearby Amenities – Proximity to nearby shops and restaurants has become increasingly more important to homebuyers.
- School District – A top-rated school district can be a major seller to families with children.
Size and Layout
Which is more important, size or layout? Well, it turns out they are both vital to homebuyers. While homes used to be boxier, the current trend is an open concept home. Open concept gives the home a more spacious feeling. Of course, square-footage has always been an important factor to homebuyers. However, while large square-footage houses used to be all the rage, it is now shown that homebuyers like homes in the 3,000 sqft range. Also, more bedrooms don’t necessarily make your home more valuable to a homebuyer. Fewer bedrooms with more space hold more value – so, don’t separate a large bedroom into two smaller ones thinking it will increase your home’s value.
Age and Condition
Historic and new build homes are more valuable than those in the middle. Historic homes always keep their value, and new builds are attractive to homebuyers looking to design their own home. In addition to age, homebuyers also consider the condition of the home. Buyers love move-in ready homes with little to no cost in repairs.
Upgrades
While it is important to make upgrades to a home over the years, make sure these upgrades are uniform with the neighborhood and subdivision, while also staying current with design trends. The Kitchen and bathrooms are the first rooms you should renovate. Buyers DO NOT like outdated kitchens and bathrooms. However, be sure to consider the cost of renovations compared to the profit you can make. Also, keep records of the repairs and upgrades to present to potential buyers when selling your home.
Negative Events
Homebuyers do not want to live in a house that has a history of mold and fires or was the site of a violent crime. While federal law does require that you disclose all known lead-based paints, state laws vary on whether you must disclose issues related to natural disasters or crimes committed on the property. Before selling, be sure to check your state laws to determine if you have to disclose negative events to the buyer.
Neighbors
There’s an age-old real estate saying, “you can pick your home, but you can’t pick your neighbors.” However, you can ask the Realtor® if they know anything about the neighbors or if the sellers will shed any light on the neighbor situation.
There are several factors, both positive and negative, that can impact the value of your home. Consider these before placing your home on the market.
Do you have any questions about your home’s value? Give us a call. We would love to answer any questions you may have.
Resources: https://www.veteransunited.com/realestate/6-factors-that-can-sink-your-home-value/