The value of your home is based on a number of factors. What might be important to one buyer could be unimportant to the next. Below, however, are some of the most common factors that affect a home's value.
Home Size
One of the most important factors that impact your home's value is its size. This value is found by estimating the price per square foot of your home. Do this by dividing the sale price of your home by the number of square feet that it has. If your home has 2,000 square feet and its sale price is $200,000, then the price per foot is $100.
Another aspect of your home's size that matters to buyers is the amount of usable space. When figuring this out, buyers don't usually include areas such as attics, unfinished basements and garages.
Comparable Homes
The sale prices of those homes that are similar to yours and in your neighborhood are a good barometer of your own home's value. These are known as comparable homes and are often used by home appraisers when estimating your home's value.
It's important to remember that a comparable home is only going to be similar to yours to a certain point. While another home might have vaulted ceilings, your could have river access. Taking these differences into account can help you determine the most accurate sale price.
Your Home's Condition and Age
In general, the newer your home is, then the higher its value. This boils down primarily to the fact that its major systems -- electrical, appliances, plumbing and the roof -- are newer and less likely to fail.
A buyer could experience significant savings over the next several years as a result. Additionally, if your home is ready to move in, you'll likely be able to charge top dollar for the privilege.
Location, Location, Location
The location of your home is critical to its value. However, just because it is in a location that is ideal for your circumstances -- close to your job or your elderly parents, for example -- doesn't mean that a potential buyer is going to place the same value on its location.
In general, a home has the greatest value if it is located within close proximity to employment opportunities, recreational centers, entertainment options and shopping. If your house is situated in a good school district, its value will also increase.
Home Updates
Both updates to a home that is showing its age and upgrades to a newer home can increase the value of the property. If you have an older home, taking the time, money and effort to update the flooring, kitchen and bathroom prior to putting it on the market can increase its value.
Similarly, upgrading your home's livable space, such as finishing the basement, can boost its value. Adding an outdoor kitchen or a screened porch can also increase the amount it sells for.
Knowing what is important to the local market means you can highlight those aspects of your home that meet the needs of potential buyers. If your home is zoned for a good school district, for example, or if it is located within an easy commute of an important employer in the area, you can expect its value to reflect that.
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