Have you ever wondered how the value of your home is calculated? There are many factors to be considered, we compiled a list of five that could be determining the value of your home.
Typically the first thing real estate agents, appraisers, and prospective homebuyers look at is the historical sale price of the property. Things to consider when evaluating the property history include selling price, frequency of transactions, and the dates of past sales.
Location and Neighborhood Competition
Property location is one of the major influencing factors for defining the home’s value and can responsible for determining a home’s appeal. The home’s value can be limited by school districts, crime rates, and access to local amenities. It is important to look at neighborhood competition to gain more understanding of the local market.
The size of the home is a major influence on the perceived value, bigger houses tend to sell for more because they generally appear as greater in value. Certain buyers look at the price per square foot to determine the “deal” they would get by purchasing the home. Some buyers require a certain amount of space limiting the home selection.
Age and Condition
In addition to size and appeal, the home’s age and condition are considered in the home evaluation process. The condition of the home can be costly to the next resident, so it is important to consider the structural integrity of the home when evaluating.
Economic indicators both locally and globally change the worth of your home. A home evaluator looks at the supply and demand circumstances of the housing market. For example, when there is a high demand for homes and a low supply of homes, then your home might be valued higher.
Are you interested in discovering the worth of your home? Click here to request a Free Home Evaluation from Quest Real Estate.