In the past, buying a home and aging in place used to be very common. And it’s no wonder since this was very convenient and offered consistency. However, nowadays, people have become more mobile and flexible. So, you often buy a home only to sell a few years later because you decide to relocate for professional or personal reasons. But buying real estate is a significant investment. Thus, when you sell your home, you should aim at making a profit or at least recover your initial investment. The key is to price it correctly. To do this, you must determine what it’s worth. Here are some factors that affect your home’s market value that you should consider.
#1 The size is one of the main factors that affect your home’s market value
#2 The location
The location is one of the main factors that affect your home’s market value. Even if you sell it as-is, you can still profit if it’s in a highly sought-after neighborhood. Homebuyers always do research beforehand to inquire about the crime rate and the schools in the area. They will also be interested in nearby parks, shops, and restaurants and close access to public transport. All of these things impact the property value.
#3 The overall condition
You can determine the overall condition of a home just by looking at it. While some are move-in ready, others require extensive repairs and updates. And the more work a home requires, the less it will be worth.
The same principle applies to the age of a home. Because the older a home is, the more renovations it requires. Therefore, it will be worth a lot less. Not to mention that a newer home will attract many more buyers than an old one.
#4 The renovations
If you’ve made any renovations in recent years, these will increase the property value. However, it's never too late if you haven’t made any improvements. You can do this before placing your home on the market.
Besides, if there are any significant issues, the home inspection will bring them to light. It would be best if you avoided this because it will enable the buyers to back out of the deal or negotiate a much lower price. That's why taking matters into your own hands is highly recommended.
Note that you can renovate a house on a budget to raise the market price. So, don’t go overboard with investments if you can’t afford them. Just set a budget and stick to it. Focus on the areas that are most in need of renovations. You should also assess the condition of the bathroom and kitchen because this has a big impact on property value.
# 5 The potential for renovation
Surprisingly, it’s not just the renovations that you make that matter. Buyers, particularly real estate investors, are also interested in your home’s potential for renovation. For example, they might want to add an extra story, a bathroom, or a swimming pool. If the space and local regulations allow it, this will increase the property value.
#6 The amenities
Home amenities are essential in determining your home’s market value. The more your home has to offer, the more it will be worth. Everything from new kitchen appliances and lighting fixtures to a swimming pool and an outdoor kitchen will increase property value. So, if you want to profit, you should consider investing in some upgrades.
#7 The local real estate market
Sometimes, it all depends on the state of the local real estate market. You might have an exquisite home with lots to offer, but if the demand is low, you’ll be forced to sell for less than it’s worth. However, if the supply is low and the demand high, you’ll likely make a profit. That’s why the Golans Moving and Storage consultants advise you to research the current local real estate market trends before listing your home.
# 8 The economic conditions
Economic conditions also affect your home’s market value. If your property is in an underdeveloped area or has increasing unemployment rates, you’ll have to sell for a very low price. And even then, it might be hard to find a buyer that can afford it. Nevertheless, if your area's economy is booming, home prices and demand will be high.
Contact a real estate agent
Since there are so many factors to consider when determining a home’s market value, you might need some help. So, get in touch with a local real estate agent. A person with experience in the field can quickly assess your home’s worth. You can even ask them to create a Comparative Market Analysis (CMA) for your property or recommend an appraiser.
To sell your home for a profit, you must price it correctly. Otherwise, you might even have trouble recovering your initial investment. Because as you’ve seen, there are a lot of factors that affect your home’s market value. Unfortunately, you can’t change things like the location or the economic conditions. However, you can do something about your home’s appearance. Any renovations you do will increase property value. It all depends on how much time and money you’re willing to invest. And if the budget is tight, just focus on priority areas. Even minor improvements can make a big impact.
Denise J. Greene has been a content writer for two years. She is passionate about helping people find their dream homes. In her free time, she likes to cook and travel.