2020 was a remarkable year for home sales, with 6.76 million units of existing homes sold during the year. It was the highest number of existing homes sold in a single year in 14 years. What’s more remarkable is that it all happened in the midst of a US economy deeply mired in a global pandemic. The overall house value was impressive, too, with the median sale climbing to $309,800 in December.
That represented a 12.9 percent increase from the previous year. This year looks promising for home sellers too. And if you’re among those gearing up to part with their homes, you may be wondering what factors will affect its value.
To help make things easier for you, we’ve outlined seven of those factors for you in this post. Read on to learn more.
1. Supply and Demand
One of the major factors determining the value of homes in an area is the inventory of homes available versus the number of interested buyers. Where there are more buyers than the homes available, the value will naturally go up. This is the current scenario in the US housing market.
Sometimes, there are lots of homes and not enough buyers. In such a market, house prices tend to go down.
2. The Price of Comparable Homes
Another great indicator of your house’s value is to check the price of homes similar to yours in your neighborhood that were recently sold. Most real estate agents rely on this method when estimating the value of a home.
When estimating your home’s value in this manner, look for the most recent sales. Consider feature similarities too, such as the square footage, home type, year built, number of bedrooms and bathrooms, and so on.
The distance between your home and the comparable home also matters. Generally, you want to choose houses in your subdivision.
That said, realize that no two homes are identical. That’s why you’ll need to make some adjustments for any notable differences, such as vaulted ceilings, scenic views, and so on. Fortunately, you can find online tools that help perform such analysis and offer a fairly accurate estimate.
3. Location
For many homeowners, their home’s current location is perfect. Perhaps you chose your house because it was near your parent’s home or close to your workplace.
However, when appraisers assign a value to your house, they’ll look at other indicators entirely. Most look at the proximity to amenities, quality of schools in the area, and availability of employment opportunities to determine your home’s value.
Simply put, homes in prime locations command steeper prices than those in other areas.
4. Property Age and Condition
As you might expect, newer homes tend to have a higher value than their older counterparts. That’s because critical components of the house, including the roof, electrical, plumbing, and appliances, are still in great condition, so buyers are less worried about having to repair or replace them.
Of course, a slightly older home that’s still in good condition will also command a higher price than one that’s been poorly maintained. Before putting your home on the market, you may want to perform some touch-ups to make it move-in ready for potential buyers. Doing so can significantly increase its price.
Of course, if you want to sell your house fast, you may want to consider selling it as-is. There are many “we buy houses” sites online looking to buy homes in any shape. Many of these companies will even buy ugly houses at a decent price.
5. Home Size
Generally, bigger properties command higher prices. But it isn’t just your home’s overall footprint that matters; it’s also how you’ve used the space. Homebuyers tend to view ensuites favorably, so create one if you can.
However, don’t lose a bedroom as you change your house’s layout. Downsizing from a 5 bed to a 4 bed can negatively impact price when the time comes to sell your house.
The more rooms your home has, the better, particularly when it comes to bedrooms and bathrooms. Be sure to have a bathroom upstairs. Other decisions regarding your home’s layout, such as whether or not to have an open plan kitchen, come down to your personal preference.
6. Potential for Improvement
Sure, home buyers want a move-in ready home. However, many still want a home that allows them to carry out some work to make it suit their preferences.
Thus, you need to be careful when making additions to your home, such as conservatories and extensions. While such additions may add some value to your home, they might also restrict what options future owners will have for making improvements of their own.
The point here is to avoid making your property too good, especially if its location is already prime.
7. Energy Efficiency
The importance of energy efficiency is unquestionable, especially with rising energy costs. A home that guarantees savings on power consumption is thus viewed more favorably by prospective buyers and will typically attract higher bids.
Besides energy savings, buyers are choosing energy-efficient homes to help reduce their carbon footprint. Investing in solar panels, top-quality insulation, double glazed windows, and energy-efficient appliances can thus boost your home’s value.
Boosting House Value Doesn’t Need To Be Complicated
When selling your home, you want to make sure that it attracts the highest possible bids from interested buyers. Knowing what factors impact house value can help you take proactive measures today to make sure you’ll make a handsome profit from its sale.
Are you interested in selling your home today? Please, contact us for the best price.