You know how much money you want for your house, but will you actually get it? Would you rather price your house to sell or to make you the largest profit?
Okay, you probably want both, but sometimes your idea of your home’s value is rather skewed compared to its actual value. Below you’ll learn the top factors that affect your home’s value. This way you can determine if you need to do anything to your home before putting it on the market or attempting to refinance.
Unfortunately, there’s nothing you can do about living space, but it does have a major effect on your home’s value. The more square footage of actual living space there is, the more your home will be worth. However, if you were to break a home’s price down by square foot, you’d probably find that bigger homes cost less per square foot. It’s an economy of scale type thing. Just like at the store when you buy in bulk, you save per ounce or per item versus buying smaller or individual items. The same is true when buying a home.
If you are considering making your home bigger, this could have a dramatic impact on the value of your home. Bedrooms and bathrooms have the greatest return on investment. But, don’t discount the value of adding a sunroom or larger family room – people often look for these things when buying a home.
Believe it or not, curb appeal weighs high on the scale when determining a home’s value. This doesn’t mean you have to go out and spend thousands of expensive landscaping. Just a clean lot with a few flowers and/or plants can help increase your home’s worth.
Not only is the curb appeal the first thing potential buyers see when coming to your home, but so does the appraiser. He can have a skewed opinion of your property if he pulls up and it has overgrown bushes and grass and unkempt landscaping. What this means is even if you don’t have time or money to maintain elaborate landscaping plans, just keeping it clean and uncluttered can help.
Location of the Home
You can’t do much about where your home is located, but you can choose to buy in the right area from the start. Look at the neighborhood, its proximity to important things like shopping and churches, and the quality of the school district.
Each of these factors plays a role in the home’s value. Even if you don’t have children, someone buying the home might. Plus, the entire area pays the taxes for the school district. It weighs heavily on how much your home is worth. When buyers buy a home, they don’t just buy a place to live, they buy into a community. It’s important for buyers to feel comfortable with what is around and with the people that are in it.
The Home’s Condition
Of course, the condition of your home plays a very important role. You can have the identical home to someone down the street, but if one home is in disrepair while the other is in perfect condition, the home in perfect condition will be worth a lot more.
Luckily, the condition of the home is something you can handle yourself. Keeping up with regular maintenance and having things repaired as they break is the first way to keep the home in good working condition. This also means keeping the home clean, clutter free, and free from any type of hazards. The more time and work you put into a home, the more value you’ll reap when you go to sell it. Buyers would much rather buy a ready-to-move-in home than one that needs a lot of work.
The most indicating factor of your home’s value is the recent sales in the area. An appraiser will pull at least three comparable sales within the last 6 months. They try to pull sales of homes that are of the same age, size, layout, and condition. Of course, this isn’t always feasible. Sometimes they have to use older or younger homes; homes of differing sizes and differing conditions. They then make adjustments accordingly.
However, if homes in your area recently sold for a lot less than what you anticipated getting for your home, you might want to wait. No matter how much you think your home is worth, you can’t fight the comparable sales. These are the prices home sold for recently and are indicative of the value for the area moving forward for the time being.
These top factors affect your home’s value. If you take anything away from this – know that you should keep your home in good working condition as well as properly maintained. This is the best way to get top dollar for your home even in a declining market. These are factors you can control that will help you get the most for your home.