The value of a home is important for both buyers and sellers, your home is most likely your biggest asset. When buying a home, you are concerned about the market value of the home because you do not want to overpay. You also want it to be a great investment for your future. As a seller, you are also concerned about the market value of your home because you want to sell it for top dollar to make the largest profit. Some things are out of your control when buying or selling a home, such as the current market supply and demand. So, what makes up the value of your home? Here are five things that factor into how home value is determined.
1. Location.
The location of your home is one of the biggest things that factors in your home’s value. Things such as what is close by including schools, restaurants, shops, tourist attractions, etc. for your area would help to determine value.
2. Age and Condition.
Usually, the newer the home, the more value it has since it should be fairly updated and major renovations should be far in the future. But, considering the structure of the house, people can be more interested in an older home that may have been recently remodeled or that has been maintained well compared to a newer house that may have some problems.
3. Supply and Demand.
This is key for a home’s value because if there is a high demand and low inventory, you will immediately see an increase in property value. When there are not very many new homes coming on the market, but there are still many buyers looking, this creates competition and therefore drives up home prices.
4. Size.
Square footage of a home is another factor that makes up value. However, it is not just the home’s size that plays in. It Is also determined by usable spaces such as a garage or shop, an unfinished basement, or attic. These areas are not always included in the square footage of a home, but can add to the end value.
5. Upgrades.
Majority of home upgrades are going to increase its value. Kitchen and bathroom renovations add the most value to the home’s value, but they also cost the most to complete. There are plenty of smaller upgrades that can have a real impact on increasing the price of a home.
In this current market, home values are at an all-time high. You want to remember that the economy can be the biggest reflection of a home’s value. One of the most important things to remember is that determining the value of a home on your own is not going to be the most accurate. The best way to get an accurate price valuation is to work with an experienced Real Estate Agent. If you are a seller, I can help you determine the value of your home before putting it on the market. If you are a buyer, I can help you determine if you are making a wise investment.