What Determines Your Home's Value?
Everyone desires to sell their house at a reasonable price. Evaluating your home to sell will not only make the selling process less stressful but will also get you a great deal. Though rates can differ from the initial evaluation, knowing the factors affecting your home's value can facilitate you to prepare it for selling and secure a better deal.
Know the difference- marketability vs. value
Though both concepts are interrelated, they affect the deal differently. Value for a property is evaluated from the buyer's preferences. The value of a property depends on what a buyer is willing to pay in the current market.
Marketability depends on the selling readiness of the property. It is essential to prepare the property for sale before listing it. It allows the potential buyers to relate themselves as living on the property, thus increasing its marketability and attracting more buyers.
Factors affecting your home's value
Location plays a vital role in determining value. A house located in a place that has better employment opportunities, recreational options, and quality schools is priced better. Besides, easy access to public utilities and transit adds to the value of the property. Though you may find your house in an ideal location, the appraiser will look for the indicators as mentioned above while assigning its value.
2. Age and Condition
An older home fetches less amount than a newly-built one. This is because an old house comes with a list of repairs and worn out warranty, increasing the expenditure of the potential buyer. On the other hand, the potential buyer will be placing a high value on a newly-built home.
3. Space and size
A bigger house (with more usable space) can get more money as compared to a smaller one. Buyers often estimate the property's price based on the area. More significant the land covered by the house, higher will be its value, keeping in mind the other factors.
The demand for and supply of property also impacts its value. If supply is more than demand, that means more sellers are willing to sell their properties, making it a buyers' market. If the demand is more and supply is limited, then the prices are in favor of the seller. Market conditions also affect the time taken by a house to sell. If the house remains listed for a long time, then buyers may get suspicious, adding further to its selling time.
Upgrading or renovating a home, especially with outdated features, can add a lot to its value. However, every up gradation may not prove fruitful as its value will depend on how important these are to the buyer.
6. Economic Situation
The economic condition of a country also influences the resale value of a property. A slowdown in the economy contracts people's buying capacity and negatively impacts the real estate sector. So while preparing to sell, it is necessary to look for the economic indicators too.
In all, selling or buying a property is a substantial financial step where a real estate agent makes all the difference. It is crucial to select an experienced real estate agent to get top dollar for your house.