The value of your home is largely dependent on what a buyer would be willing to pay for it. That being said, you have to remember that every buyer is different. A family may weigh up the location, schools, and jobs over the general condition of the property. If you can be mindful of this, then you will soon find that you are able to make the most out of your property sale.
Factors that could Have a Major Impact on Your Home’s Value
Your Surrounding Neighborhood
One of the major influencing factors that you will go up against when trying to sell your home is the value of other homes in the local area. It doesn’t matter whether you get a home appraisal done, or whether you get a comparative market analysis booked in. A lot of real estate agents will use the value of surrounding homes to gauge the value of your property, and the sooner you can understand this, the sooner you’ll be able to get a realistic price for your own property.
If you want to help yourself here, then you need to try and look out for homes that have sold recently. The more recently they have sold the better too. It is a good idea for you to try and choose homes that are very similar to yours, in terms of the features, the year that it was built and even the number of bedrooms. If you can do this, then you will soon find that you can gauge whether or not the value of your home is going to be as high as you want it to be.
The Square Footage of your Home
When the time comes for you to estimate the value of your home, you have to think about its general size of it. A bigger home can easily impact your valuation positively. Usually, you are looking at the price per square foot. This would be the sale price divided by the square footage of the property.
If you have a home that has sold for $200,000 and it is 2,000 square feet then the price per square foot would be $100. The price that a buyer would be willing to pay for every square foot can vary quite a lot, as it depends on what you are buying. Having a property worth $100 per square foot could well be a bargain, but for some properties, it might not be worth it at all. This is not the only factor that you have to think about though. You also need to think about usable space. This could include garages, attics, and basements.
Age and General Condition
Homes that are newer tend to go for more money overall. A lot of this comes down to the fact that the most critical parts of the house, such as electrics, the roof, plumbing and even appliances are newer. Therefore, they are not as likely to break down and this can generate a lot of cost savings for a buyer. If you have a roof that comes with a warranty for around 20 years, then this is money that you can save for the next two decades.
If you buy a home that needs a roof replacement in a few years, then you may be looking at thousands, and this can impact a buyer’s decision as to whether or not they want to buy your home. A lot of buyers will pay a lot of money to move into a home that doesn’t need anything done to it at all, and that is why you should do as many repairs or renovations as you can, prior to selling your home.
Updates and upgrades can add a remarkable amount of value to your home. This is especially the case if you have an older home that has a lot of outdated features. That being said, you have to remember that not every improvement project is created equally. The general impact of a project or even an upgrade will vary depending on the market that you are in.
Studies have shown that if you were to have a finished basement in Portland, this would be worth 5x more than if you had a finished basement in Atlanta. Some projects, such as adding a pool or even a wooden floor can also give you a much higher price increase if you have an expensive home. Kitchen remodels or even adding a bathroom can also give you a boost if your home is not as expensive.
The Market’s Impact on Your Home’s Value
If you know that your home is in fantastic condition, and if you know that it is in the best possible location, then you need to look at the other properties in the area. You see that you have a lot of competing homes, then this can bring the value of your property down as it is a buyer’s market. If you see that there aren’t a lot of people selling their homes, then this would make it a seller’s market. If you are in a buyer’s market, then you will probably be giving your buyers a little room to negotiate when it comes to the general price of your home.
You may even find that you have to adjust the price so that you can then try and attract more offers. It may also be that you have to be much more flexible with the timeline or that you have to pay things such as closing costs or to try and cover some repairs. Additionally, it is imperative to remember that market conditions can also affect how long it is going to take for your home to sell. If you are within a seller’s market, then homes tend to be snatched up very quickly but if you are in a buyer’s market then it is normal for your home to be listed for much longer.
If your home has been on the market for quite some time, then a buyer may have reason to believe that there is a reason for this or that the price is too high, and it is not worth the money.
The broader economy will usually impact someone’s ability when it comes to either buying or selling a home. If you have a slower economy or bad market conditions, then you may find that the housing market struggles overall. If employment or even wage growth happens to slow, then fewer people may have reason to believe that they cannot afford a home. It is vital that you try and keep up with all of the latest economic happenings where possible as this can help you to keep up with everything, and it can also help you to evaluate if now is the best time for you to be selling your property or not.
If you need some help when it comes to selling your home, then the best thing that you can do is try and go through a reputable real estate agent. You can find someone who you can truly rely on when it comes to selling your property, then this will help you to make the most out of your sale, and it will also give you the chance to make sure that you are capitalizing on the improvements you may have already made. If you need some additional help, then hiring a mortgage broker could be a good idea as well as they can help you to find a new property that meets your expectations in terms of budget and interest.