7 Critical Factors That Determine The Value Of Your House | Blogs

7 Factors That Determine The Value Of Your House

18 Jul 2022

When it comes to the value of your home, there are a number of factors that come into play.

Home value estimator tools are commonly used nowadays by everyone who is into selling a house in Idaho. Still, you must be aware of all other factors that an estimator can’t evaluate. With the help of our real estate professional team, we have compiled a few critical factors that will affect property value.

1. Location!

If you ask any real estate professional about the most important thing that determines a house’s value, they will say ‘Location’ for sure. Wondering how? If you live in a desirable neighborhood, your home is likely worth more than if it were in a less desirable area.

Some factors collectively make it the most important, including nearby schools, colleges, famous spots like restaurants or shopping malls, employment opportunities,  traffic & noise levels, and chances of land growth. While evaluating the value of a home, location is more important than the size or condition.

2. The Size Of Your Home

Another factor that can affect the value of your home is its size. It’s not the only factor that will affect your home’s value, but it’s definitely one of them. If you have a large home, you may be able to command a higher price than someone with a small one.

But even if your home is on the smaller side, there are still ways to maximize its value before putting it on the market. Generally speaking, larger homes are worth more than smaller ones.

3. The Condition Of Your Home

The condition of your home is also a factor in its value. If your home is in good condition, it is likely to be worth more than if it needs repairs. Potential buyers even like to pay more for a move-in-ready house.

Newer homes are in demand. The main reason for this is the new condition of your home’s critical parts. For example, plumbing, electrical, mechanical, and appliances will likely work and function properly for an extended period of time. If you have a house with a damaged roof, you should repair it as fast as possible, and the average cost is around $8.000.

4. The Market Conditions

The current market conditions can also affect the value of your home. If the housing market is booming, your home is likely to be worth more than if the market were stagnant or in a downturn. In simpler words, it’s called supply and demand.

Prices often decline when there is a lack of demand for housing and a surplus of available dwellings. “Cold market” is the term used to describe this situation. The price of your home could go up when there is a high demand for housing and a limited supply. This is called a ‘Hot Market.’

The Value Of Your House

5. Your Personal Circumstances

Your personal circumstances can also affect the value of your home. If you need to sell quickly, you may have to accept a lower price than you would if you could wait for the perfect buyer.

Also, what if you need the amount in just a few days and the buyer wants installments? You can’t do anything but refuse them to sell your house. For this, be prepared for any situation and start looking for buyers when you just get a hint of any unfavorable situation that leads to selling your house.

6. Historical Sale Price

What’s the last price that any buyer agrees to pay for your house, or what was the cost when you purchased it? The reason for mentioning this point is that it will affect the overall value unless you have upgraded your house with a valuable home improvement project.

If the property has been sold three times in the past, and there was a $10,000 increase every time, it may mean that it will increase only $10k this time too. But exceptions are always there!

7. Privacy & Security

Everyone in this world wants to be independent and hates to answer what they are doing and for what purpose! Privacy is a major concern for most buyers as they want independence. Also, they want a safe and secure place for their families and valuable belongings.

Let’s suppose the crime rate in your area is increasing daily, and you think your home value is still the same; you are wrong, my friend! This is not the case. Crime rates do affect the value of a place. If your house has security cameras installed and functioning properly, it’s a plus for you. 

Bonus Point

Cultural Beliefs:

Cultures have an impact on how people build or select homes. When examining how cultures affect our homes, five major concepts come into play: materials, beliefs, environment, customs, and diversity.

These are just a few factors that can affect the value of your home. If you are considering selling, consulting a real estate professional is essential to get an accurate estimate of your home’s value.

Ways To Find The Value Of Your Home

How much is my property worth? Don’t put your head in this complicated stuff; just look at these intelligent solutions.

Market Competitive Analysis: Take some time and start analyzing what’s happening in the market? If your neighbors are shifting, ask them about the sale price.
Online Valuation Tools: All you have to do is enter your home address in the Home value estimator, and BOOM! You have a very fair estimated price right in front of you.
Ask From An Agent: An experienced real estate agent is the one. You will never get a wrong estimate as they are more aware of the market conditions as compared to us.
Professional Appraiser: The opinion and estimation of professional appraiser matters. Most lenders hire them to get exact about the property value. You should do the same.

Conclusion

If you’re thinking of selling your home, it’s important to understand the value of your property, location, and size. Working with a real estate professional and using online tools (Home value estimator) gives you a good idea of what your home is worth.

Frequently Asked Question

Frequently Asked Question Propertysolutionsnorthwest

1. How Will New Development Affect Home Value?

A lot! If construction or new development is going on, it increases the overall value of your house. The main reason is that development means new opportunities that play an important role in community enrichment.

2. What Makes Property Value Increase?

A few valuable home improvements, installation of simple and effective gadgets, especially in the kitchen, beautiful and easy-to-use home appliances, a fresh coat of paint, decluttering, working of adding curb appeal, and staging your house before a showing can surely increase the value of your house.

3. What Determines Home Value OR What Affects Home Value?

There are a lot of factors that collectively determine your house value, including excellent location and security concerns,

4. What Affects A Home Appraisal? 

Recent sales and current market trends determine a house’s worth and affect a home appraisal. In addition, the number of rooms, square foot area, floor plan, gadgets, and luxuries in the house are also vital factors.

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