If you are considering selling your home, there are some important factors you need to be aware of, as they can significantly affect the value of your home. When you know what potentialities to expect, you might be able to take steps to protect the property value of your home.
After reading each point, we encourage you to schedule a property inspection to get an accurate estimate of your home’s value. At Guardian Angel Inspections, we are Palm Beach County’s leading authority on a wide range of inspection services, so give us a call and let us help you determine your property’s value.
Until then, let’s discuss the 8 factors that affect the property value of a home.
There’s an old saying in real estate and business that you’ve likely heard before, and that is “Location, location, location!” The idea is that a business with an ideal location will attract more customers and go better in general.
The same principles apply to homes. The location of your home can have a large impact on your property’s value. In general, houses are more valuable in areas with few housing options and lower costs. But when it comes to the type of location, there are many variables that can change a property’s value.
One factor could be if you’re in an active or quiet neighborhood. If there is a high crime rate in the area where you live, then your home isn’t as desirable to other people and might be worth less than what it would be somewhere else.
2. Neighborhood Comps
If you’re looking to sell your property, one factor you might want to weigh is the neighborhood. The way your home compares to other similar homes in the area can have an impact on your home’s value.
For example, if your property is one of a kind with unique features that are difficult to find in the neighborhood, you get it at a premium price. There’s more demand for properties like yours, and you don’t have any competition.
If there are many houses like yours in the neighborhood, then this is a disadvantage because there will be more competition lowering the price of your home.
3. Age and Condition
The age and condition of a home can play a big part in the property value. Older homes require more maintenance than newer homes. They also tend to be larger and often demand a higher price because of the resale potential. Additionally, they are sometimes harder to sell.
Newer homes typically have lower housing rates, which means they can sell quickly at any given time, regardless of market trends. With new construction, buyers don’t have to wait until something is on the market before purchasing it.
4. Home Size and Usable Space
The size and usable space of your home are critical pieces of information for potential buyers. If you’re thinking about adding on to your home, make sure that you consider the cost of land and how much it will cost to build.
Costs can quickly skyrocket if you start building an extension or even renovating the current structure. However, those additions can also serve to attract buyers if they provide value. It all depends on what a buyer is looking for, which can dramatically change from one buyer to the next.
The value of a property generally increases with upgrades and updates. If you have older appliances or fixtures, upgrading to newer models can increase the worth of your home.
If the investment will make a difference in the market value if your home, you might want to take the plunge and upgrade accordingly.
6. The Local Market
Another important factor that will affect your home’s resale value is the local market. If you live in a booming area, your home might be worth more than it would be in an area with less demand.
For example, if there are jobs available in your area and you live near a high school, those are two factors that could increase the demand for your property. If a lot of people want to buy homes in your area but don’t have enough cash, they may offer to pay extra for yours just to get it off the market.
If you live in an area with a weak economy, on the other hand, there might be less demand for housing. So even if you have a beautiful home with all the bells and whistles, it might not be worth as much when you go to sell it because there are fewer people who can afford it.
7. Interest Rates
One of the factors that affect the market value of a home is the interest rates. The lower the interest rates are, the more people will want to purchase a home. Lower interest rates mean that people don’t need as much money to put down for their down payment and monthly mortgage payments are lower.
Obviously, these are very appealing factors to potential homebuyers. And they can make all the difference in the attention your listing gets from those buyers.
8. Economic Indicators
Economic indicators play a big role in determining the value of your home. Unlike many other factors, these can be influenced by external forces and are not permanent. The unemployment rate, GDP, interest rates, and inflation all play into how potential buyers see your property.
These factors have a direct effect on demand and supply of homes. When the economy is doing well, people are more likely to purchase homes than if it’s struggling.
Call Guardian Angel Inspections Today
Residents of Palm Beach County know that they can count on Guardian Angel Inspections for all of their property inspection needs. So if you would like to arrange one or you have questions about a property inspection, please contact us today at (561) 512-7854.
The information in this blog post is for reference only and not legal advice. As such, you should not decide whether to contact a lawyer based on the information in this blog post. Moreover, there is no lawyer-client relationship resulting from this blog post, nor should any such relationship be implied. If you need legal counsel, please consult a lawyer licensed to practice in your jurisdiction.