Why It's Worth What It's Worth: Factors Affecting Home Value
Most of us know the mantra that answers," What are the top three factors that determine a home's value?" If you responded "Location, Location, Location" you're right. But what makes for a good location? And what is it about a particular home that gives it value?
Part of the answer is subjective – one person's ideal feature can be another person's deal breaker. But in general there are factors that affect a home's value and attract, or detract from its appeal to buyers.
Virtually every buyer will be a seller one day, so it pays for both potential buyers and sellers to pay attention to the characteristics that help determine how you present or future home will be valued relative to similar properties in your neighborhood:
- Area (square feet)
- Structural condition
- Total number of rooms
- Number of bathrooms
- Number of bedrooms
- Central air
- Full, dry basement
- Size of garage
- Energy efficiency, utility costs
- Landscaping, curb appeal
- Quiet, safe, clean, attractive neighborhood
- Overall positive public perception of the community
- Adequate fire and police protection
- Quality public schools
- Libraries and other cultural institutions
- Proximity to shopping, restaurants, recreation
- Access to public transportation
- Well maintained infrastructure; roads, parks and other public recreation facilities
- History of solid property values
- Planned changes to zoning, or proposed development projects that could significantly alter the character of the community
Perhaps the main reason many people choose a particular home is that it simply feels like home. Smart buyers and sellers also keep in mind that a home also represents a big investment in time and money.
For expert advice on property values, contact your local ERA professional.