What’s Your Home Worth? 7 Factors That Impact Your Home Value

When it comes to selling, every homeowner is trying to get top dollar for their house. But what determines their home’s value? Here are several variables that could increase or decrease your resale value.

Location, Location, Location (Obviously)

A great house in a poor location can knock a significant amount off the value of your home. Even two comparable homes located on different parts of a street can vary in value. For instance, homes with the highest values within a neighborhood are typically located in the middle of the block or in a cul-de-sac surrounded by homes similar in age, style and size.

Today’s homebuyers, especially Millennials, are placing emphasis on finding homes in areas with amenities in walkable proximity.

Over-Personalized Renovations

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Maybe you did a major kitchen overhaul complete with chef-quality appliances to suit your love of cooking or did you put in a pool for your kids to enjoy over the summer. While that renovation is valuable to you, it may not be worth the cost to other homebuyers. People like to imagine their own desires and needs in a home rather than pay up for a costly or over-personalized remodel.

Age & Condition

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Historic (but livable and maintained) and newly-built homes are typically more valuable than the homes that fall in between. Buyers will either fall for the character and charm of an older home or the little-to-zero need for home improvements and renovations in a new build.

Too Few Bedrooms & Bathrooms

In 2015, the average home purchase had three bedrooms and two bathrooms, according to the National Association of REALTORS 2015 Profile of Home Buyers and Sellers. For repeat homebuyers, their biggest reason for selling their current home was that it was too small.

These stats place emphasis on how the number of bedrooms and bathrooms can contribute to your home value. Additionally, if you’re thinking of taking on a remodel that decreases your number of bathrooms or bedrooms, you should probably think twice.

Little Comparison to Neighboring Homes

Did you price yourself out of your neighborhood with major remodeling projects? Is your single-family home surrounded by townhomes and duplexes? Are you in a neighborhood saturated with rental properties? Being surrounded by homes that aren’t comparable to your own, can decrease your home value.

For instance, if you’re located next to several rental properties or apartment buildings, studies have shown your home value can decrease as much as 15 percent.

Negative Events

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Did you have a major plumbing issue? Is your home in a flood zone? What’s the crime rate in your neighborhood? Even uncontrollable aspects of your neighborhood or location can contribute to and downgrade your home value. Smart homebuyers will ask for a home inspection and do their research before making their final offer.

Poor Home Maintenance

Home condition is a major factor in home value. Most homebuyers will pay more for a well-kept home than one that is in need of a few thousand dollars’ worth of work. Experienced buyers will pay special attention to the condition of your home’s paint, flooring, walls, ceilings, doors and windows, as well as a home inspector’s report on plumbing, electrical work, roofing, etc.

Your home value is dependent on several things, some which are out of your control, such as the condition of the housing market. If you’re preparing to sell your home in the near or distant future, read our blog about the things you should start doing now for a quick and profitable sale.

If you’re planning to buy a home again, download our free Upsizing & Downsizing Guide for everything you need to know about making your next move.

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