11 Apr 6 Factors That Affect The Value Of Your Home
6 Factors That Affect The Value Of Your Home
When preparing to sell your home you want to make sure that you can get the best value for your property. There are several factors that affect the value of your home, it is important to prioritize which ones are the easiest to fix and will give you the biggest return on your investment.
- Local market
The real estate market is the biggest determining factor of the value of your home. One major player in this equation is whether you are in a buyers market or a seller’s market. A buyers market means that there are more houses on the market than there are buyers, which can give you more room to negotiate because there is less competition for the sale. A seller’s market means that there are more buyers on the market than there are houses, which can cause an increase in the price of the home with buyers trying to outbid each other in order to get the sale.
A major factor in how much your home is worth is the location or neighbourhood that your home is in. Does it have access to good schools? Employment opportunities? What local amenities are nearby? Buyers want a home that fits their lifestyle, so unless you’re selling to celebrities hiding from the paparazzi or someone aspiring to live off the grid, a home in some remote location isn’t going to work.
- Home size
The base value of a home is calculated by the price per square foot. Other important factors are the amount of usable space(storage-garages, attics, basements, etc) and liveable space(bedrooms, bathrooms).
The value of your home will depend on how much comparable homes in your neighbourhood have sold for. Look for homes that are similar in size, features, and upgrades.
- Age & Condition
Newer homes will have a higher value than older ones because they will typically save the buyer more money in the long run. Costly expenses like cosmetic upgrades or major replacements like roofs or windows will put a dent in the value.
Bathroom & kitchen upgrades are important to buyers because those are major both major projects to tackle and fund. A dated look can be costly, and having the peace of mind that comes with an updated home is priceless.
- Local market