Guide to Home Value
Back in the 1990s, Beanie Babies were all the rage. People were willing to spend a lot of money on the small, stuffed animals, thinking the value of the toys would only increase as time went on. Ultimately, the craze ended and people found themselves with rooms full of nearly worthless stuffed animals.
Home value works in a similar way. When houses in a particular area are in demand, the amount people are willing to pay for a home jumps. The fewer houses available on the market, the higher the perceived value of a house and the more you can sell it for.
The opposite is true, as well. When there are a lot of houses available, or when people aren’t in the mood to purchase a home, the amount you can realistically expect to get for your property drops.
But it’s not just supply and demand that influences the value of a home. Knowing the other factors that contribute to the price and market value of a property will help you determine how to value your house when you want to sell it.
What Is Home Value and Evaluation?
The market value of a home is simply the price that someone is willing to pay for your house if you were to put it up for sale. Often, the value of a house will be different depending on who you ask. As the owner of the home, you’re likely to value it quite highly. A potential buyer might take a look around and assign it a lower value. Finally, a home appraiser — someone whose job it is to evaluate homes and assign them a monetary value — might give your home a completely different value.
In an ideal world, the amount you believe your home is valued at, the amount a buyer values it at and the value a home appraiser assigns it, will be within close range of each other.
Home values are constantly in flux, since the market is always changing and the condition of your home can evolve and change over time, too. Let’s take a look at a few factors that affect the value of a home and what you can and can’t do about them.
- Location
Location plays the biggest role when it comes to determining the value of your home. When people purchase a house, they aren’t just buying four walls and a roof — they’re purchasing a lifestyle. Where the home is located helps them determine whether or not they’ll get to enjoy the type of lifestyle they want.
For example, a home buyer with younger children might be concerned about their ability to play outdoors safely. A house on a cul-de-sac, with a large backyard, is going to usually be more valuable to that buyer than a yard-free home located on a busy roadway.
Amenities near your home will also affect its value. If your home is a near a train station or other public transit station, it will often have a higher value than a home that doesn’t have easy access to transportation. Homes in mixed-use communities that have transit nearby generally have more stable home values than houses in more traditional developments.
It’s also possible for the businesses and amenities near your home to negatively affect its value. While being located near a grocery store, a coffee shop and a post office will help boost your home’s value, being located near businesses that tend to have a less than savory reputation, or near warehouses and industrial buildings, can lower your home’s value. And although people often want to be near transit, being near an airport often has a negative effect on the value of a home, too.
- What’s Inside
You’ve probably heard it said that “it’s what’s on the inside that counts.” That cliché is true when it comes to the value of a home, for the most part. Although there are buyers out there who don’t mind a fixer-upper, most people are willing to pay more for a well-maintained, move-in-ready home.
Even superficial things, like a kitchen that looks like it’s stuck in the 1940s, or a bathroom that’s covered in rose-printed wallpaper, can lower the value of a home. The good news is that some upgrades are usually simple and inexpensive to do. It doesn’t cost muc
h to get rid of outdated wallpaper or to spruce up the cabinets in your kitchen.
Even a major renovation project can be worth your while when it comes to boosting the value of your home. While you won’t get back the full cost of renovating or remodeling an out-of-date bathroom or kitchen, it’s possible to recoup a fair amount of your expenses.
The average bathroom remodel cost $17,908 in 2016. The average homeowner was able to recoup $11,769, or nearly 66 percent of the cost. A major kitchen overhaul cost an average of $59,999 in 2016. Homeowners are typically able to recoup $38,938, or nearly 65 percent of their expenses.
Ideally, the renovations you make to a home will have nearly universal appeal. Still, there’s a big risk in custom-designed home renovations. The more your home’s interior is designed to suit your tastes, and your tastes only, the lower its perceived value will be.
And it’s not just the upkeep of the house that matters. How it’s arranged, and its size, are also important factors when it comes to determining its value. Often, the more bedrooms and bathrooms a house has, the higher the price it can get. People are usually more interested in having room for a guest room or enough space so that each kid can have his or her own bedroom than they are in having one giant master bedroom.
Most home buyers are like Goldilocks. They don’t want a house that’s too big, and they also don’t want a house that’s too small. Owning either a 3,500-square-foot McMansion or a 350-square-foot tiny house is going to mean a lower overall home value, no matter what’s inside or where the home is located.
- The Home’s History
Every home has its story, and some houses have better stories to tell than others. If your home has ever caught on fire, flooded or otherwise been the victim of a disaster, that will potentially lower its value. Even if you made all the necessary repairs, people will be wary about the structural damage to a house caused by flood waters or fire. Plus, if it happened before, people are going to be concerned that it will happen again.
In some cases, events that occur in your house, but don’t actually affect the quality of the house, can still lower its value. For example, a “non-natural death” in a house can cause its value to drop by up to 25 percent.
The information about a house that a seller has to reveal to potential buyers varies from state to state. In Pennsylvania, a seller needs to disclose whether the house has had water damage and termite problems, for example. PA law doesn’t require you to tell a potential buyer about any negative events that don’t directly impact the home’s structure or quality. But depending on how well-known certain events are, it’s likely a potential buyer will find them out on his or her own.
- The History Around Your Home
What has gone on in the world around your home can also influence its value, both positively and negatively. If your neighbors are all selling their houses and getting top-dollar for them, it will be easier for you to get a high price for your property.
But if something bad happened in your area, such as a crime wave or a major employer closing down, and people are fleeing in droves, that will have a negative effect on the value of your property. A lot of foreclosures in your area will also bring home values down.
Negative events can be difficult to bounce back from, even years or decades later. Your neighborhood might be safe now, but if it was known for having a high crime rate once upon a time, that history can still be reflected in the value of its properties.
If your house is a square peg that’s surrounded by round holes, that can also have an effect on its value. It can be difficult to judge the value of a single-family home when it’s surrounded by attached houses, for example. It can be tough to say how much a modern house is worth when it’s the only new property on a block full of historic homes. Homes that don’t match up with other properties in the area are often valued lower, which can make it difficult to get a good price when you’re trying to sell.
How Do I Know How Much to Sell My House For?
There are two main ways to figure out how to price your home. Online home value calculators give you a ballpark figure to use for free. They can be a great starting point to see if the value of your home lines up with what you hope to get from a sale.
Another option is to work with a real estate agent and an appraiser to determine a fair value for your home. Usually, agents look at what are called “comps” — that is, similar homes in the area that have recently sold. If you own a 1,000-square-foot home, knowing that one person paid $150,000 for a home of the same size a block away and that another person paid $200,000 for a same-size home down the street can help you choose a price that’s in line with buyers’ expectations and with the general market in your area.
Appraisers use a more comprehensive list of criteria when determining the value of a home. An appraiser looks at comparable home sales in the area, as well as the history of the site of your home, any improvements you’ve made to the property, the neighborhood itself and the sales history of the home.
What Makes a Comp a Comp?
Since very few houses are completely identical, it can be difficult to know whether the house you’re comparing your property to is actually a comparable property. There are a few criteria that your appraiser or real estate agent should look at when looking for comps.
- Square footage. A comp doesn’t have to been the same exact size as your property. But it will be within the same general range, usually between plus or minus 15 to 25 percent of the size of your home. If your home is 1,000-square-feet, comparable homes can be between 750 and 1,250 square feet.
- Sell Date. The age of the sale matters, since the real estate market changes so quickly. A sale that happened a year ago is most likely too old to serve as an accurate comparison. Ideally, comps will be less than three months old. If there aren’t many home sales in your area, you might need to look at comps that are up to six months old.
- Distance. The closer the homes are to your home, the more accurate the comparison will be. Generally, homes should be within a mile or half-mile radius of your home. If you live in an area where homes are more scattered, you might need to expand your radius considerably.
- Features. A home with a fancy new kitchen and swimming pool is going to have a higher value than a home without a pool and with an older kitchen. Look at what’s inside the homes when making your comparisons. Ideally, the properties will have the same features and amenities as your own, or as close to the same as possible.
- Listing vs. Sale Price. It’s helpful to see what people hoped to sell their homes for and what they actually got for the sale. That way, you can see if the determined value of the home actually lived up to what it was worth on the market and avoid making a similar mistake yourself.
How to Put Together a Pricing Strategy
Figuring out the value of your home is just the first step towards putting it up for sale. You don’t necessarily want to list your home for its exact value. Instead, you want to list it a price that will attract the most buyers and will make it easier to sell your property.
You might not want to hear this, but it’s often better to price your home on the lower end of a pricing range than on the higher end. There are a few reasons to do this. For one thing, if your home is valued at $260,000, but you list it at $249,000, you’re likely to get more buyers interested in it. You’re able to reach buyers with budgets below $250,000, as well as deeper-pocketed buyers who might be after a bargain.
The more people who are interested in your home, the more likely it is that there will be a bidding war. That means buyers can potentially drive up the price of your home in an attempt to outbid each other.
Pricing your home on the lower end also makes it easier for people to find when they’re doing a search online. A house priced at $260,000 won’t show up if a buyer sets his or her upper price limit at $250,000. But that same house will show up in the search if you price it at $249,000.
The quicker your home sells, the better. Some sellers make the mistake of assuming they can always slash the price if a house doesn’t move fast. While that’s true, cutting the price and having a house sit on the market for a long time raises doubts and questions in people’s minds. A potential buyer is going to be more likely to wonder what’s wrong with the house, or why you lowered the price, and might be less inclined to check it out.
That said, it’s still a good idea to have a plan for the price of your home. If buyers don’t flock to your property and get into a bidding war over it, what will you do if your home is still on the market after a month? You might need to cut a bit off of the price, which can sting, but only if you didn’t plan for it in advance.
Value of Homes for Sale in York, PA
What are the values of homes for sale in York, PA right now? Home values in York have been fairly consistent over the past year, with the median sale price holding steady at $141,450 from October 2016 to January 2017. The median home price in York is considerably lower than the national median, which was $234,900 in November 2016. The average price per square foot in York, PA was $87 in 2016, an increase of 1 percent from the previous year. Meanwhile, the median rent in York, PA from December 2016 until January 2017, was $995.
What’s your home worth? Use the home value calculator from CENTURY 21 Core Partners and find out today. Whether you’re getting ready to sell or you’re just curious, knowing the value of your home can help you put together a plan for the future.
Recent Company Testimonials
-
“I Trust him and his devotion to his clients Many of these do not apply as the perspective buyers came to me however from that moment on the Piper's killed it with very little effort on my part. Love that team !!! Always there to answer a late evening question on the process I would more than recommend the Piper's. I would insist that friends and family use them if they want a great buying/ selling experience.”
-
“Stacey took 3 years to help us find our farm. She is AMAZING to work with. If we ever have to buy anything again in the entire state of Pennsylvania she is who we will work with. The only agent we will work with. She became my friend during this incredibly lengthy process. She is a true credit to her profession and you guys are lucky as heck to have her on your team!”
-
“Stacey was amazing from our first meeting with her. She is helpful and knowledgeable in the York area. She quickly responded to my hundreds of questions and never made us feel like an inconvenience. Enjoyed working with Stacey and will again, if needed!”
-
“Heather went above and beyond to not only help us find the house of our dreams, but also walk us through the process of buying our first home. We are so grateful for all her experience and help through the process! Heather was so kind and knowledge through the entire process! I feel like the word excellent does not do justice to the grates listed above. It always seemed like she went above and beyond to help us at any time of day!”
-
“Awesome Job. Our home buying dreams came true”
-
“Stacey is as good as they come. Easy going, no pressure, and sharp as a tack. I asked a million questions and she never hesitated to answer every single one of them. She’s patient, personable, kind, and extremely knowledgeable. Everytime we saw stacey for a showing, it was like hanging out with a good friend. I’d recommend her to anyone.”
-
“I met Susan in 2016 while working for AT&T. Who would’ve known that a simple sale / upgrade of a cell phone would turn out like this. Through the years following, she made 2 trips to our home and gave us her honest unbiased opinion about what we should do to get our property ready for market. Thanks to Susan, our home sold in 4 days!! I feel like not only did I have an agent, but a good friend in the end. Thank you Susan for being there and helping us achieve our goal. David and Roberta Sponseller”
-
“Eva was exceptional to work with. I worked with her for nearly 2 years looking at properties until finally closing on the perfect house. Her service with me as a her client was the same from day one until( and even after) settlement. I would highly recommend Eva to anyone looking for a friendly and professional experience.”
-
“She made it happen, aggressive and highly knowledgeable about the entire process. She was absolutely awesome. I will use her again. Awesome agent Crazy market, yet she made it happen within a short period of time. Overall experience was awesome.”
-
“Heather was amazing, she had my house sell within a week. I did not have any problems at all everything was fast and easy Thank you Heather, It still means a lot to us”
-
“Ed was very help I highly recommend him to all if my family and friends”
-
“Susan is absolutely wonderful. I had worked with her previously and wished to work with her again. Susan does such a fantastic job, that I recommend her to my friends and coworkers. I look forward to working with Susan in the future. Susan was not only professional but put me at ease with selling my house. I have a very hectic work schedule and Susan made sure she was available for questions at all times of the day. Susan is a spectacular realtor and person.”
-
“I am in the business of purchasing investment properties. Elle is the only agent I would use. She is knowledgeable about real estate, passionate about doing what's best for her clients, and studies the market to get the best possible property for the best price. Here, she provided me with critical information on the market value of the property. She negotiated a good price given the market status right now (being a seller's market). She made sure the settlement was on track at all times and communicated with me often to ensure that I knew the status. Settlement went on schedule with no complications. That is what is most important to me (and I think this should be added to your survey) - communication. Often buyers/sellers do not know how this process works. Agents should be guiding them through the process as it unfolds. This is what sets Elle apart from others. She was there with me throughout the entire process. I was not "just another sale." I was and always will be her client. Thank you, Elle, for making this deal go so smoothly.”
-
“Dwayne was able to get the seller to take care of a few things that most wont consider doing. Very easy going and calm personalities makes them awesome negotiators. Its always a pleasure working with Dwayne and Gina! Very knowledgeable but always open to learn and brainstorm my ideas and thoughts. Thanks for all you do!”
-
“We were referred by my daughters friend, I had a previous realtor and was not satisfied with her, we were in South Carolina looking to relocate, we have family here. Susan Spahr worked with us and my daughter who lives in York, we had to do a virtual tour and she made it easy. She sent us listings and took my daughter on the tour. She was very hands on thru text, emails and phone calls, anytime I had a question she was there with an answer. She took care of the inspection and kept us informed because we we in South Carolina and our dog had surgery so we could not travel. She was a pleasure to work with and I absolutely would recommend her to anyone, she is an asset to Century 21.”
-
“Eva Kelly is very knowledgeable and very easy to work wilth. I would recommend her to all my friends and family. When our son sold his home we made sure he was working with Eva. Eva is very easy to work with. Eva always remembers follow up. Which was very important in this particular purchase.”
-
“I am very grateful to Rocio Palacios, she is the best sales agent I have ever met and I would undoubtedly work with her again and will recommend her.”
-
“Excelente todo gracias por siempre estar pendiente de todo y ayudarme mil gracias excelente trabajo en equipo”
-
“They listened to what we were looking for and the price range we wanted to stay in. We're available to show us houses quickly”
-
“I know Ragaa and i trust her Ragaa was professional with everything, friendly, nice, kindand helpful She worked with us as one of our family I’m only worked with Ragaa and she did great Ragaa did great job, helped us with everything”
-
“Eva was a pleasure to work with and went the extra mile to help us through the process. From the first time I met Eva, I felt comfortable talking to her and it was evident that she understood the market. She helped when we wanted advice but also knew when to step back and let us discuss privately. Eva was responsive to all of my questions, even after closing. She clearly wanted to help us and was not just trying to earn a quick commission. I am truly thankful that we chose her and would recommend Eva to others looking for a Realtor.”
-
“Dwayne Piper is excellent at his job. He’s knowledgeable and personable and I’d recommend him to anyone in need of a real estate agent.”
-
“Okwy is the best real estate agent in the DMV area. She prayed along with us throughout the entire process and was extremely supportive and helpful. We could not have asked for a better agent. We would definitely recommend.”
-
“We moved from TX to PA - not an easy task. Sue Spahr went above and beyond for us - even showed us homes via facetime! We love Sue and would recommend her again and again!”
-
“Eva Kelly's professionalism and due diligence was highly appreciated. This made the sale of my home a breeze!”
-
“Heather is an amazing realtor! Her knowledge, patience and expertise are second to none. She made our homebuying experience truly delightful!”
-
“Susan makes the process enjoyable!! I have sold/purchased homes with Susan in the past and I never ever worry about missed details, forgotten paperwork or miscommunication. She explains the process with patience and professionalism, then follows up with detailed correspondence and time lines. Susan is kind, understanding, thorough, transparent and keeps the process painless and stress free for everyone !!! I would recommend Susan 100%!!! I am extremely grateful for her professionalism and compassion!!!”
-
“With the difficulty of closing this sale, Heather was extremely patient. Her diligence was greatly appreciated by all parties brokering the sale of the property. Any issues during the sale were immediately communicated, with possible solutions, so the best resolution could be obtained.”
-
“It was never a question of who I was going to go with when choosing the right person for the job. Eva is incredibly knowledgeable and always takes the time to answer any questions that I have. She is a joy to work with and whenever anyone I know is thinking of buying or selling I always suggest contacting Eva. Everyone that I’ve encountered at Century 21 have been extremely nice and it’s just an environment that immediately puts you at ease. The team works together and you can just tell that they all have a great relationship with each other.”
-
“His knowledge and years of experience helped guide us through this process successfully. He has a great personality and is very approachable, the other thing that means a lot to us is his and his wife's participation in the Homes for Heroes program. A program that gives back to veterans, nurses, and teaching professionals.”
-
“Okwy is soft spoke and has a lot of patience. She understood my needs and guided me accordingly. She was kind and considerate. I recommend her to anyone in need of a home.”
-
“Scott is an amazing agent! He always had our back and accommodated us every step of the way. By far the best agent we’ve ever worked with. The best agent out there!”
-
“Michael was very easy to work with , he was very knowledgeable years of experience which is what I needed due to my circumstances with my home. He sold my home within less than 24hours and got me out of a hardship situation. Grateful.”
-
“Susan is a very knowledgeable and friendly agent. She is extremely efficient and organized, in addition to being very patient and flexible. Susan makes her clients feel comfortable with the entire home selling process and she treats everyone with respect and dignity. She works very hard at making sure her clients are informed, satisfied and encouraged. We would highly recommend Susan and will most definitely use her services in the future!”
-
“Susan was very understanding and very patient with me. She wasn’t rushing me to buy a house. She stay in touch when I wanted to give up, she didn’t give up on me. If she didn’t stay in touch I think I would have gave up. I like that she communicated back-and-forth regarding any changes she stayed on top of everything and kept me informed. Everyone I came in contact atCentury 21 are very kind.”
-
“Brian Kocsi has everything, without his accomodation I won’t be able to relocate here in York PA to be with my sister.He worked with my sister to checked the property.It’s tooled a while to find my home now I’m happy we’re I’m with my sister, brother in law and my two dogs they love running in the park.Thank You Brian Your a Family now.”
-
“We were extremely impressed with Susan Spahrs knowledge and availability to show as many properties to us as needed. Extremely pleasant and easy to work with. We would not hesitate to use her again and would refer Susan to all our friends!! Fantastic and knowledgeable realtor who is at the top of her game!! Never had to deal with anyone but Susan. She was amazing!”
-
“Absolutely incredible experience. Heather has an awesome personality, is extremely knowledgeable, and has great attention to detail. This was my first time buying a home and she (and the loan officer, Mike Cersei), were nothing shy of amazing. They made all of my financial options crystal clear, as well as Heather’s experience and attention to detail with even the smallest aspects of the home I purchased. She has the ability to be the friendliest person you’ve ever met, and flip a switch when it comes to negotiation with other agents and getting you exactly what you want at the price you want it. That cannot be taught. Overall fantastic experience and I thank her and her team for my first home.”
-
“Great job, so patient and understanding. Dwayne and Gina Piper have an awesome.personality and were so helpful and informative. I would highly recommend them.”
-
“Always keep great communication Always answered all questions if she didn't know the answer she will find it. Fast working. Hard work. Flexible. Honest .great people and communication skilled. She's great. Knowledgeable. Honest Becomes one of the family. Out going friendly. Would refer her to family and friends.”
-
“We had what we thought would be a difficult piece of property to sell. I spoke with Heather Bradley and, in one phone call, she knew what our plans were and how to best execute them. Thanks to her research and hard work we were able to have the property sell within just a few weeks.”
-
“Shanna was very approachable and easy to work with. I was always able to reach her no matter the time of day. The market is moving very quickly, but she was able to show us just what we were looking for!”
-
“I heard of it’s friendly and professional people from another person She was just a text or a call away”
-
“Brian did an amazing job right from the start. He was very professional and was always available to us to answer any questions. He was always on top of whatever needed done. The advertising, sale and closing on our property could not have gone more smoothly. Brian did an excellent job.”
-
“Heather tirelessly helped me search for a great home for my family in a difficult market when we were often up against multiple offers. She was professional and dedicated. She helped me get the house I wanted even when I was starting to get discouraged!”
-
“Eva Kelly will work hard for you. She is always able to be contacted and is very knowledgeable. She makes buying and selling a home very easy!”
-
“Susan Spahr was knowledgeable and professional. She was very patient and understanding working my son while we lived in Pittsburgh. She E-mailed us with all the info we need to make our purchase transition smoothly. We would recommend Susan Spahr to anyone looking for a house in the York, PA area!”
-
“Incredibly helpful”
-
“We called, and Eva answered. We are so happy she did. She took the time to understand our needs and exceeded all of our expectations. She exceeded ones we didn't even know we had! Eva knew our needs and was available anytime for showings and to answer questions. She did facetime calls to show those of us who were not local to the properties and was patient and explained every detail. Eva handled this long distance relocation so well. Always happy to make video calls, send photos, described what she saw in detail and was beyond patient with the process. She is a GREAT agent for those relocating from far away! Eva is extremely friendly to our LGBTQ Community and sensitive to hesitations with neighborhoods and privacy.”
-
“Heather is the #1 agent in South Central, PA!!!!!”
