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4 Factors That Influence The Value Of Your Home

Written by Ceci Dadisman | Aug 3, 2020 4:00:00 AM

There are multiple factors that come together to influence the value of your home. We've picked the top four we use in calculating a home's value. 

 

1. Location

 

Where your home is located is one of the biggest factors in your home's value. 

Many attributes come into play including:

  • Proximity to highways and major roads
  • Access to public transit
  • Local school districts
  • Area shopping, dining, and entertainment options

 

When it comes to calculating your home’s value, location can be more important than even the size and condition of the house.

 

2. Size and Usable Space

 

The market value of a home is usually measured in price per square foot. A larger home with more square feet will likely be valued higher than a smaller home in the same neighborhood.

When thinking about square feet, the amount of usable space is important. Garages, basements, and attics are not considered usable space, while bedrooms and bathrooms are.

 

3. Condition

 

The condition of your home can mean selling it quickly or seeing it sit on the market with little interest from buyers. 

Buyers prefer a well-maintained property that has been updated with modern finishes over a home that will need renovations. However, a home that needs work can be desirable if it is located in a sought-after neighborhood. 

 

4. Housing Market Trends

 

The housing market changes quickly and is based on supply and demand.

When the supply of homes doesn't meet the demand, prices will rise.  Conversely, if there is a surplus of homes on the market, prices will decrease. 

The economy, interest rates, and national events can also affect home sales. It is important to keep an eye on home sales and prices in your area to know when it is the right time to sell your home.