What Factors Affect The Value of Your Home? - Image 1

What Factors Affect The Value of Your Home?

Posted on: 06/05/2021

Pricing a home can be overwhelming. Whether you are trying to put an offer on a home or trying to sell one, you want to do it right. You do not want to undervalue your current home or overvalue one that you are contemplating purchasing. Correctly valuing the home can help sell the property quickly and make the overall experience less stressful.

So, what are some key items to look at when you are trying to gauge the value of a home?

PROXIMITY TO VALUABLE ATTRACTIONS OR AREAS

A home or neighborhood close to local attractions and shopping centres is going to be more valuable than a home that requires a long drive to everything in the nearest town or city.

Proximity to popular parts of a town with plenty to do, eat, see, and shop will add value to the home. A location near parks or other green spaces can add significant value as well. Homes that are close to green spaces can add £3,000 to the property value and those with a view of a green space can add almost 2% to the value.

CONDITION, SIZE, AND KERB APPEAL

Newer homes typically sell for more than older homes. That is not a surprise to most people. This is partly because newer homes tend to have less work required of them to move in. Time is valuable and a turnkey home gives buyers more time. However, if an older home has been well-maintained and is in great condition, it can sell for just as much as a similar new home.

Homes that have a classic or neutral layout will be able to stay in style for a long time and this will help them sell for more. If a home has been updated to include new finishings and materials for the bathroom or kitchen, this can add a lot of value. They tend to be the most expensive rooms in the house, so looking to see what quality materials or appliances are there can help you see where to place the price. Converting and finishing an unused basement or attic can add the value of another bedroom or office to the house.

THE NEIGHBORHOOD

The homes around the residence you are looking at can affect the home's value. Looking at similar homes in the neighborhood can be a guide when trying to place a home's price.

The crime rates in the area and school ratings will impact the price as well. Homes in an area with top-rated schools will sell higher than homes that are zoned for lower-rated schools.

Issues with the land in the neighborhood, such as flood areas, can lower the home value as well.

PREVIOUS SALE PRICES

Be sure to look at the home's history. This can give you a thorough picture of the home's value. If a home has been sold multiple times for similar prices over the last 10-15 years, you know that those prices are a good place to start.

The home may have been updated since it was last sold, but with previous sale prices in mind, you can add the updated value to those prices.

Take a look at how long the home was on the market during previous sales. If those durations look like a quick sale, then the price is probably reliable. If it was on the market for a longer period of time, it may have been valued incorrectly.

THE MARKET

The most obvious impact on a home's value is the market at the time it is being valued and sold. The home will be worth proportionally more or less depending on how the market looks.

PROFESSIONAL EXPERTISE

If adding and subtracting all of these factors of value sounds overwhelming, there are professionals and technology that can complete the task for you.

Websites like Zoopla, Rightmove, and Yopa can help give you a little more understanding of the home's value. This is often based on previous sales, neighborhood, crime rates, and schools. If there has been any recent update to the home or the area that the home is in, it may not reflect that increase or decrease in price just yet. These sites are helpful resources, but are not what you should finalize a home's value with.

Mortgage lenders often require a professional appraisal of a home before a purchase, so you will likely be required to get a professional opinion on the home's value. Appraisers are not only for purchasing. You can also hire a professional to help you value your home properly before you sell it as well.

IF YOU ARE SELLING

It is important to remember that even a professional appraisal may not guarantee the price you will sell or purchase a home for. If your home is extremely desirable, it may get multiple offers and go above the selling price. But-- if your home is of average value and desire it could very likely sell for lower than you list it. It is important to factor this in when deciding what price you want to list it for. You will need to decide the lowest price you are willing to take for the home.

It is so beneficial to accurately price the home when selling. If you overshoot the price and a buyer's appraisal comes back lower than the offer, the financials of the purchaser can get tricky. This could push back the selling of your home and homes that have been on the market for a long amount of time can appear less attractive than quick sale homes.

TAKE YOUR TIME

The housing market can be tough. Most people want to buy and sell a home quickly. Taking the time to accurately price can save a lot of time, money, and effort in the long run. Use these tools and tips to help you gauge the value. Make whatever transition you are going through as smooth as possible and get an accurate home value the first time.

As above, there are many factors that come into play when valuing your home. If you would like to sell quickly to a property cash buyer please feel free to contact us here at Quick Property Buyer. If the no obligation cash offer would be acceptable to you, we would then pay for the external valuation of your property and all other fees.




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