“What is my home worth?” This is a commonly asked question for homeowners who are considering moving or listing their home for sale. Multiple factors go into what makes up a home’s value. Here are three important factors to consider that influence the value of your home.
A large indicator of what your home’s value relies on comparable homes in your area and what they have sold for recently. Utilizing a home appraisal or an analysis completed by a real estate agent will provide you with the best idea of where your home lies within the current market. There are many factors that go into comparing homes in the current market. The main areas that are looked at include how recently the “comp” has sold if the home is in the same neighborhood as yours, the location, and key features that may be similar especially the number of bedrooms, bathrooms, and square footage.
The size of your home will also play a large role in determining your home’s value. Homes are generally priced per square foot, meaning the larger the house, the bigger the price tag. However, this is not to say the price per square foot is equal across the board. This is where the location and usability of the square footage come into play. You will see a higher value to your home if you have more livable and usable space or if your home is located in a more desirable area. Therefore, if you have a finished basement, garage, or attic or your home is located in a well-established neighborhood, you are more likely to see a higher value in your home.
Age and Condition
As you can guess, a newer home will come with a higher price tag due to the main parts of the home being new and less likely to break down. This means that the buyer can worry less about costly expenses such as a new roof, appliances, or faulty electrical. However, if you do not have a newer home, it does not mean your home doesn’t have features that are more valuable. For example, if you recently had a new roof that came with a 20-year warranty, or if you had new plumbing installed when you moved in five years ago, these will provide you with a higher appraisal.
While these factors are certainly not the only factors considered when determining the value of your home, they are key indicators that influence the pricing. If you are considering placing your home on the market, keep these in mind to ensure a list price that will attract buyers and lessen the time your home is spent on the market.