For most people, their house is their most valuable asset. However, not all property owners were able to sell their homes for their actual selling price. It is because several factors affect the value of the property.
If you have plans on selling your house, you need to know the different factors that influence its selling price.
1. Location of the property
The location of the house you have now may be ideal for you. It can be close to your parent’s house, to your job, or your kid’s school. But you need to take note that appraisers have different ways of determining the value of your home basing on its location.
Appraisers are looking for three primary indicators, and they are the following:
- Employment opportunities
- Quality of local schools
- The house’s proximity to entertainment, shopping, recreational centers
Additionally, the house’s proximity to utility lines, highways, and public transit also affect the overall value of the home. More often, the location of the property matters more than its size and condition.
2. Neighborhood comps
Another factor that affects the value of a property is the selling price of other similar homes in the neighborhood that’s already been sold recently. More often, these comparable houses are called “comps.” Whether it’s an expert evaluation, a market analysis conducted by an agent, or a home appraisal, the majority of real estate experts will depend on the estimated home value of the comps.
3. Usable space and home size
The size is another crucial element to consider when estimating the house’s market value. The bigger the house, the more it can positively impact the evaluation. The property’s value is calculated in price per square foot. And the amount that the prospected buyer will pay per square foot can differ significantly. It depends on where you are buying.
Aside from the size of the property, its usable space also has a significant impact in determining its value. In general, attics, unfinished basements, and garage are not counted in terms of usable square footage.
For appraisers and home buyers, the most important in a home is the livable space. Bathrooms and bedrooms are the most highly valued. So technically, if your house offers more baths and beds, then it will have a higher value.
If you want to improve the value of your home, you can search for top projects and trends in terms of home improvement. Or, you can contact a home renovation company in Tunbridge Wells and other locations for your home improvement needs.
4. Age and condition
Typically, newer homes have higher appraisal value. This is because the critical parts of the house, such as the appliances, roof, electrical, and plumbing, are newer and are less likely to break down, which is suitable for the buyers because they’ll be able to save money.
Many home buyers are willing to pay high prices for homes that are move-in-ready. This is the main reason lots of prospective buyers require an inspection contingency in their contract. They prefer doing negotiations about home repairs to avoid possible major expenses after the purchase.