Important Factors To Consider When Estimating Your Home’s Value

Published on December 30, 2019
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Important Factors To Consider When Estimating Your Home’s Value

Every buyer is going to vary when it comes to buying home. Some people weigh more importance to factors like location, while others focus strictly on the size and appearance of the home. The value of your home is ultimately based on how much others are willing to pay for it in the market so it’s important to consider these following factors that all play a part in your home’s value.

Location

While your home may be the perfect location for you, this doesn’t mean its amazing for another buyer. Almost all buyers like to consider three components when determining if a home has a valuable location: Quality of the schools nearby, employment opportunities, and relation to grocery shopping and other recreational activities. Also, proximity to highways or public transportation comes in to play when making a decision as well. Location is one of the most important things to consider it may even be more than the house itself!

Other Homes In The Area

An interesting note that not everyone considers is checking out the sale price of similar homes in the area. These homes are known as “comps” because you compare the price of recently sold homes to your own. Usually, real estate agents rely on this to calculate your own home’s value. Just remember that sometimes you will have to adjust in certain ways because no two homes are the same and you need to account for every difference.

Condition

Usually, newer homes appear to be more valuable because the basic foundations like plumbing, electricity, roof, and other appliances are in tip-top shape. Most buyers are willing to pay more for a home that is ready for immediate move-in. Nobody wants to settle in a new home and have to start renovations right away! Just imagine, you’re sitting on the couch when suddenly you see water dripping from the roof and you have to lay down $8,000 just to replace the roof. Not fun!

Size

Size can definitely play a part in impacting the value of your home. Usually, home value is equated by price per square foot. Not only is this important to consider but also extra garages, attics, basements because they usually aren’t included in the square footage. Buyers care most about livable space and bedrooms/bathrooms are of the highest importance.

 

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