Are you buying or looking to sell your home? Maybe you're just curious about the value of your current home?
The value of your property can be affected by a wide variety of factors. To help you better understand how real estate property is valued, we're breaking down the top factors that affect property value.
In most situations, the bigger the home, the higher the property value. Buyers are typically looking for the square footage of liveable space.
Unfinished spaces and garages are typically not calculated as part of useable space, but can still often increase the value of the home!
Properties that are newer and in better condition often have higher property values. Why? They require fewer costs up front for repairs and are less likely to have expensive structural issues.
Newer homes are typically more desirable. But an older home that has been well-maintained is often more valuable than a newer home that requires major repairs.
Location is one of the biggest drivers of property value. Even a smaller or older home in a desirable neighborhood will attract more buyers. Desirable locations tend to be close to good schools and have easy access to shopping and other amenities.
You can't change the location of your home, so keep this in mind if you're looking at buying a property.
Many buyers want move-in ready homes. That's why renovated homes that are filled with updates tend to have higher property values.
If you're looking to make updates to your own property, start with the kitchen and bathroom. You'll see the biggest rate of return on your investment.
Even homes that aren't updated can have higher property values simply based on their upgrade potential.
Some of the things that make a home have more potential include:
The market conditions in your area can significantly affect the value of your property. When demand for housing is high (more qualified buyers) and supply is low (fewer homes for sale), values of homes will rise quickly due to increased competition.
This doesn't only affect your property but all homes in the market.
The value of your home is best determined by comparing it to 'comparables.' Comparables are homes that are similar in size, have similar amenities, and are in the same area.
If the value of comparable properties rise, your property will also be worth more.
From yard space to finished basements, the amenities of a property can impact the value.
Some amenities will add more than others. For example, garages can add significant value, while pools can reduce the value of the property. The most valuable amenities can depend on your specific area.
High-valued homes on the same street or in the same neighborhood can help elevate the value of your property. On the other hand, neighboring properties with low property values decrease the value of your home.
In areas with hot rental markets, investors and home buyers will often look for homes that have the potential to cash flow with rent.
Homes with secondary suites or in-law suites are often valued higher, since they offer additional income potential.
There are a myriad of things that can affect the value of your home. However, understanding the top factors that affect the value of real estate can help you from overpaying for a potential property or undervaluing your own home.
We hope this article was of value to you. For more great tips, bookmark our site and for all your mortgage needs, visit the A Team at TMFFMS.
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