7 Important Factors That Affect The Price Of Your House

Updated: Feb 15



Are you curious about your house’s worth? With the rapid influx in the real estate marketing trends pricing the home for buying or selling is not just a piece of cake. While meticulously browsing the exponential MLS listings thoroughly, the intimidating fluctuation in the house prices lures your mind into thinking about how the home prices are determined? Who decides the price? Or what extrinsic and intrinsic factors make a home more or less valuable? Even if you are not a first-time buyer or seller, the actual values can vary substantially from the initial estimated evaluation due to the volatile market trends. Effective home evaluations can make the investment process stress-free and seamless, and knowing the right home value can help you secure a lucrative deal.


While interpreting the potential reasons that significantly impact the house’s value may be complex. Still, the advantage of knowing them is simple –save you from losing out on thousands of dollars and prevent it from sitting in the market for too long. To make your approach relatively seamless, we have thoroughly boiled down the factors to the critical ones that demonstrate the significant impact on a home’s value.


1.Location


The desirability of the location secures the first spot in the checklist when it comes to personal preferences that govern real estate values. Your current home is a sound location for you as it is close to your job, near your family, but the appraisers determine the worth of your house based on these prime indicators:

● The quality of educational institutes nearby

● Employment opportunities

● Proximity to recreational facilities and shopping districts

● Nearby public transportation conveyance


Real estate in cities boasts an exorbitant hue than in the suburbs due to easy accessibility to business districts, major landmarks, quick access to neighborhood amenities, emergency centers that ultimately reduce the commuting time. These factors govern why some neighborhoods are pricey.. A Parkview property in the neighborhood will cost you the earth compared to the same house structure away from the park in the same locale. Similarly, the proximity to less desirable utilities like airports, railway platforms, and major rush roads also impacts the property’s value.


2.Neighborhood Comps


The most legitimate tool used by the appraisers and the listing agents while determining the worth of your home is neighborhood comparable. The notion is to look for the homes in proximity to yours that are no more than 10% greater or smaller featuring similar conditions, age and have been listed and sold within the past three months. The problem is that no two comps can be identically alike, so you will need to make adjustments for the minor differences by considering the granular details like vaulted ceilings, commute to good schools, scenic view, etc. And for that, you will have to take into account a lot of comps, skimming through the prices they were listed at and then actual figures at which they were sold to get an idea of the current market.


3.Age and Condition


If you own an old house with long-overdue renovations, it's worth will be far less than the newly built, up-to-date home. –even if the home is large and located in a coveted neighborhood. Whilst calculating the home's worth, ensure to consider the overall condition. Usually, the newer properties are exorbitantly priced because they don't need any major upkeeps. Just because the house is old it doesn't mean it's worth is less –for an old home with the upgraded wiring, replaced roof, fitted modern utilities, age is just a number.


4.Home size and usable space


The market value of the property is evaluated in terms of price per sq. ft. Garages, attics, unfinished basements are not taken into account as usable spaces. Appraisers size homes in terms of usable space. So if you own a 2000 sq. ft. home with a 600 sq. ft. garage, it is only 1400 sq. ft. of livable space. Consider the recently sold nearby homes to estimate the per sq. ft. price by simply taking the final sale price divided by the square footage.


5.The curb appeal


According to the studies, a tree-lined street can instantly add up to 15% of the home’s value. Bolstering the curb appeal of your house adds to its overall semblance. Neutral and traditional layouts with the hint of urbanity tend to carry more value than obscure layouts. Dripping in opulence, the houses with an extra appeal create a visual allure with their discreet modifications, apt interior, and picturesque surroundings. If your house has that visual spark, then it will notch up the asking price while selling.


6.Access to amenities


The more connected the property is to the basic features, the higher the value. They are now considered as the unique selling points of urban gated societies. Convenient access to generators, water supply, ample parking space, in-house community clubs, recreational and fitness centers, high-speed escalators boasts a substantial surge in the real-estate value.


7.Market trends


The local real estate market is constantly evolving due to economic climate, competition, interest rates, resulting in rapid influx in the market prices. Even if your house flaunts an excellent condition with the best location, and there are a lot of similar houses listed for sale in your neighborhood with a limited number of buyers in the market, you will be forced to price your home competitively to secure a potential prospect.


Timing the market can be intimidating if you don’t have ample resources to maintain the house until the housing inventory is tamed. Honest Reviews 4 You bring you an expansive list of authentic buyers in the market to lock a win-win deal without losing time.


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