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Your Home’s Value: What Factors Affect It?

Real estate - Courtesy of Shutterstock

Real estate - Courtesy of Shutterstock

When a person buys a house, they want to know that the price they’re paying matches its actual fair market value. That boils down to a very simple question:  how much would a reasonable person be willing to pay for it, taking all relevant factors into consideration? To determine that, it is a good idea to look at some of those factors individually.

Size 

One important element is the size of the house. The number of bedrooms affects the size of the family that can comfortably live there. The quantity of the rooms matters also, as does their dimensions. A home with a large, comfortable living room and a spacious kitchen will fetch more than one with small versions of those areas. The number of bathrooms will also be significant, especially to big families that need more for day-to-day convenience.

Condition

If all the parts of a house are in a great condition, its value will be enhanced. On the other hand, a house needing repairs to plumbing, electrical systems, and roofs will find that their home’s value decreases by more than what those repairs would cost. The reason for that is if a potential buyer were to see problems of that nature, they would suspect that there were additional problems to be found later and substantially reduce their offer. For that reason, it is best to have all repairs taken care of before selling your house. The investment you make in doing so will pay off well when potential buyers come to look at it.

Home Improvements 

Adding quality fixtures, from new faucets to a new shower, can also have a great effect on the value of a home. Smart homebuyers will test these things when they consider buying a new place, so having new models in great working condition is a plus.

Other home improvements, like replacing scuffed tile with clean new flooring or repainting walls a pleasant color, can also increase a house’s valuation in the view of potential buyers.

Outside, landscaping has the same effect. A freshly mowed lawn with nicely trimmed bushes and an attractive flower garden conveys a positive impression of the whole property, raising the amount anyone would pay for it.

Location

Along with the size, condition and appearance of the house, location is key in determining its value. If it is in a high-crime area, the value of the house decreases. If it is in a low-crime area believed to be very safe, its value immediately goes up. In this regard, the value can be enhanced further if there is good local security as well.

The view is another important aspect of location. A beautiful view of the ocean, a forest, mountains, or even tranquil-looking suburbs can all be value-enhancing. In contrast, if the house faces rundown storefronts or other homes that are in disrepair, the value plummets. This is one of the reasons why homeowners quickly complain when neighbors let their own properties become unsightly. If the problems are visible throughout the neighborhood, the sales prices of everyone’s homes will be affected.

The same is true if the home is near a factory. In this case, the concern is partly aesthetic. Most people don’t want to live near a big industrial plant and have to look at it every day. The other part of the concern is pollution. If the factory lowers air quality, the perceived worth of nearby homes will be lowered too.

Traffic is an additional component of location. According to the experts of www.thevancouverrealestate.ca, being too close to a big box store, for example, will mean having to deal with the traffic from their customers on a daily basis. Correspondingly, being far from such businesses and avoiding such traffic problems adds to a home’s value.

Of course, location also affects considerations like the availability of good schools and parks in the area, which are also looked at when determining what a house is worth.