Home value depends on multiple factors. Moreover, keep in mind that each buyer’s needs are different. There is a possibility that one prefers to pay you less than your expectations and others more. The reason behind it is that the house might not check all the boxes for one family, but for others, it might do.
Still, if you are a seller and don’t have any idea what are the factors that can affect the home value, this article will help you. As you will learn multiple points in detail.
Neighborhood Comps
The fastest and most straightforward way to find out your home value is by checking the recently sold homes that are similar to the property you’re trying to buy or sell in terms of location, size, condition, and features. Mainly it is a comparison that the real estate agent does. Even real estate experts often rely on this method to find out the actual cost of the property.
If you are wondering how the process goes on, here is the advice:
Search for the homes around your neighborhood that have been sold recently.
Look for the sold houses that are pretty similar to your property. For example, they have the same number of bedrooms, bathrooms, and other similar features.
Also, ensure the sold house has the same distance from schools and other major facilities, otherwise, the price can be affected.
If your home is at the corner of the street, but the other house isn’t, keep in mind that your home value is going to be more. Similarly, other features play a crucial role, so don’t ignore them.
Location Plays a Vital Role
Nowadays, location is something that matters the most for the buyers. There are many who prefer to be in a residential area that has smart features like Islamabad smart city. Also, families choose to be in an area that is safe and has schools, parks, and other entertainment spots.
All these are the major points that increase or decrease the value of the home. So, don’t forget that location is more vital than the size of the property and the condition.
Size of the House and Available Space
Without a doubt, the size of the house impacts the home value significantly. But along with the size, the space available in the house counts too. What’s the point of having a massive house if it doesn’t have enough space like a garage, attic, or proper basement?
Remember, the cost of the house is generally determined in price per square. In case the basement isn’t well built or some area is unfinished, it isn’t going to count in usable space. Simple means the home value will get affected.
Condition of the Property and its Age
Mainly, the houses that are brand new have high value in the market. It is because they are in good condition, as the chances of anything breaking down in the house are rare. Contrary to that, the houses built years ago aren’t able to get good deals unless the seller keeps them in great condition.
So, as a seller, if you want your house to be in great condition all the time and like to get a higher value of it, make sure you pay attention to its maintenance. Don’t ignore minor issues just because they aren’t creating more extensive problems.
Property Upgrades
As time goes on, the liking of the people changes. These days people don’t prefer to have a house that has old features. So, to increase the home value, upgrades and updates are the keys.
Now before investing the money in the upgrade, it is essential to visit the real estate market first and understand the trend. Also, ensure you make changes that last for a long time, as you don’t prefer to make changes every month or two.
The Local Market
The market also plays a significant role in deciding the values of the house. It doesn’t matter if the home is in a prime location, has an excellent feature, and has the best condition; if the market isn’t in your favor, you will fail to get good deals.
If the buyers in the market are a lot, but the available homes are limited, it simply means the market is in favor of sellers. However, if the buyers are fewer but the number of available homes is a lot, the market is simple in buyers’ favor.
So, the buyers and sellers must know what’s the right time for them to make deals. Because blaming the market all the time isn’t right as real estate market dynamics keep on changing from time to time.
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