Whether you’re thinking about buying a new home or selling your current one, you likely have a few questions about what determines a home’s value.
It’s often a tricky subject because every buyer has different priorities. The perfect home for you might be close to your parents’ house, even if you have to drive a little farther to get to work — or maybe you’re searching for a place with public transportation options. You may be willing to spend more for a property depending on certain attributes.
Regardless of your preferences, there are important factors you should keep in mind when calculating a home’s property value. Here are four of them.
You’ve probably heard the stereotype that the three most important factors when it comes to real estate are “location, location, location!” In reality, there’s a lot to consider, but location really does matter.
Homes in attractive neighborhoods may have higher values because of their proximity to commodities. Appraisers will account for nearby opportunities for employment and the quality of schools in the district, as well as access to shopping malls, recreational centers and nearby entertainment.
2. Property Taxes
Like it or not, property taxes are an important factor tied to your home’s value. And yes, property taxes are somewhat dependent on location!
A high property tax isn’t necessarily a bad thing. The money will ultimately benefit fire departments, libraries and other public services that help maintain your local community. Altruism aside, you should always take property taxes into consideration when you’re looking to buy a home.
3. Home Size and Livable Space
If you’ve spent any time browsing your real estate options, you’ve probably noticed that most listings will include the property’s price per square foot. Obviously, a large, spacious house will generally cost more than a smaller one. But not every square foot is created equally.
Think about it. A five-bedroom house might sound like a dream if you have a big family, but what if it only has one bathroom?
In general, bedrooms and bathrooms are the most highly valued aspect of your home when it comes to pricing based on usable space.
4. Upgrades and Improvements
A newer home will typically have a higher value than an older one. That said, upgrades and improvements to a home can make all the difference in the world.
A kitchen remodel can go a long way in improving a small home. If a home is already larger and more expensive to begin with, details like hardwood floors can increase value.
Upgrades to energy efficiency will also significantly increase a home’s value. If you already own a home, you might consider switching to more energy-efficient appliances or adding solar panels. Even something as simple as investing in good insulation can help regulate a home’s temperature and lower your energy costs.
These kinds of features will increase your home’s value when it’s time to sell — and in the meantime, you’ll get that much more enjoyment out of your living space.
Choose CENTURY 21 Core Partners to Buy or Sell a Home
When it comes to buying and selling property, you’re never just looking at a house — you’re looking at a home and a lifestyle. We see it that way too, but we also recognize your home as an investment in your future.
Our experienced REALTORS® aren’t just real estate brokers. We’re family. Get in touch today to learn more about how we can help you with home purchases and sales.