Have you decided to sell your house? Before you get around to doing everything about marketing, finding a buyer and finalizing the sale, you need to understand its value. Multiple factors play a role in determining the value of your house. However, in this article, we will talk about the factors that are the most important.
All homeowners are looking at ways to maximize the selling price of their home. Besides the basic factors such as the age of the house, recent repairs and renovations, neighborhood, etc. are other factors like schools in the vicinity, the resale value of the house, accessibility, and the like. What a buyer is ready to pay for the house is the true value of the house. However, all buyers have different preferences. Some may value central location whereas some may not like the noise in the vicinity.
Here are the top factors that determine the value of the house:
Previous values of purchase price: Buyers, agents or appraisers first look at the price history. They want to know how much you bought it for and the buying prices of all previous owners. This will help them assess if the price of the house is following an upward trend or going down. They will also gain an idea about any renovations or issues with the house that may have caused the change in the price.
As a homeowner, you will also need to research other similar homes in the vicinity. Most real estate agents will use that value as a benchmark to determine the price of your home. Once you research these prices, you will be in a better position to decide a price for your house. While this is just an approximate estimate, an appraisal will help determine the true value of the house.
The vicinity: One major determinant in home buying is the neighborhood. The location greatly influences the number of buyers your home will have. Many buyers take the decision solely based on the location and vicinity despite disliking certain elements of the house. That is because the house can be completely changed but not the location. A good location will strengthen your marketing efforts and add value to the home.
Other features of the locality also influence buying decisions significantly. These include the availability of proper schools, distance from business areas, availability of restaurants and other entertainment options, etc. While you may think that only houses in the main parts of the city sell quick and at good prices, that is not true. The houses on the outskirts are as much in demand. It all depends on what the buyer expects out of their home purchase and all buyers have different expectations.
Size of the house:
Naturally, the cost of the house is directly proportional to its size. The more the square foot area more will be the price of the house. Houses that come with a patio or extra outdoor space are in great demand. Larger home size will also ensure a better resale value for the house. Buyers are concerned about resale values because no one wants to sell at a loss. Also, remember that only the square footage of livable space adds to the price and not the unlivable space. So, you may have an unfinished basement or garage, but they do not add any value to your house. You may argue that these are still spaces in the house, however, they do not add to the square footage.
Condition of the house along with age and renovation history:
Any house will deteriorate over time. This is natural ageing just as with all other things. However, dedicated homeowners take care that the house doesn’t decline severely and become a rotten mess. Many old homes can still be well maintained and in good condition. Some old homes if in good condition sell for much higher due to the historical value attached. So, it is of prime importance that the house is well maintained. Apart from regular maintenance, efforts to keep the house updated with the times will also add value. No one would like to buy a space that seems like it is from a bygone era. Renovations and modernity are key features that will help sell your house at a good price.
Condition of the real estate market:
While the market condition cannot be controlled by the homeowner, it is one of the major factors that impact the value of the house. In a recessed economy or a slow housing market, it is difficult to sell a house. That is because the buyers will not have the money to pay you or to opt for a mortgage loan. When you are hustling through such times, it is wiser to mark the price a bit lower to attract buyers.
How you can increase the value of the house:
You do not need to put all your money and time into renovations for your house to sell. Even if you are short on time, minor changes can help. Paint the walls, pep up the entrance, mow the lawn and make similar changes that add to the aesthetics of your space. Once you have the attention of buyers, you can market other features that may be valuable to them. You must market well to gain the requisite attention to the house.
By keeping these simple points in mind, you will certainly be able to ascertain the value of your home. Keep up with renovations and changes so that you can increase it. We wish you a smooth home selling journey.