The home buying experience can be an overwhelming experience that can be exhilarating, fun, stressful and exhausting. The process of securing a mortgage, successfully bidding on a home and completing the transaction can be lengthy, complex and involve seemingly endless professionals. Those professionals may include a buyer’s agent, a loan officer, a home inspector, title […]
Factors That Affect A Home’s Value
Your home is your castle. You’ve put in a lot of love and attention into it to make sure that when it comes time to sell your home, you are getting a good return on investment. As such, you should be aware of factors that can affect your home’s value—both those you can and cannot control.
Your Home’s Location
The location of your home matters. School districts, neighborhood market conditions, and commute times all affect the value of your home. Buyers want to purchase a home in a location that appeals to and meets their needs. If your home is in a poor school district or has a long commute time from essential services like groceries, your home may lose value as buyers shy away and look for something closer to their desired services.
The Land The Home Is Built On
The land your home is built on is just as important as the condition of the home and where it is located. For example, if the home is in a flood zone that is a significant risk that many potential homeowners do not want to have to worry about. They’d have to purchase additional insurance and other agreements to get a loan for the home and protect their investment in case of flooding.
On the other hand, land can also make the home more valuable since land is in limited supply. If the land is in good condition and demand is high, you can expect value to increase over time.
The Home’s Interior Rooms
The rooms inside the home can also have an effect on your home’s value. For example, if your kitchen or bathroom is out of date, it can lower the value of your home. Updating your home will help increase your home’s value but remember not to renovate if you will not be able to recover the cost of remodeling.
Trees On The Property
Does your property have beautiful, healthy mature trees? If so, you’re in luck. Trees have been shown to increase your property and home value by up to 20 percent! So before you sell, be sure to landscape and make sure your trees are healthy, as healthy trees will also make the property safer.
A Death On The Property
It may be hard to believe, but it’s true: if there was a death on your property it can affect your home’s value. Called a stigmatized property, these properties have a less-than-stellar reputation which can turn potential buyers away due to superstition and a general distaste for living in a home where someone has died.
Depending on what state you live in you aren’t necessarily required to disclose deaths, but it is a good idea as buyers will eventually find out and it’s the ethical thing to do. Disclosing deaths on the property will not only protect you from potential legal action, but a buyer backing out halfway through the deal.
When selling or buying a home, consult with your agent and lender to stay up-to-date on your state and local laws, as well as factors that can affect the home’s value and its ability to sell. They will guide you through the process.