It is understandable that you will want to sell your current property for as much as you can, especially if you are trying to upgrade. Homeowners will put a lot of work into raising the value of their house, but are they doing so correctly?
There are many factors that will affect your property’s value, some will raise while others may cause it to dip slightly. Fortunately, you will find it easier to sell your home if you are realistic with your asking price. Therefore, this article will look at what exactly affects the price of a home so you can be prepared to set the correct asking price.
Location
Of course, the prime factor affecting your home’s value is its location. It is easy enough to search on EZ Home Search to find out the value of a property in Greenville. Although, when you think of a location, chances are you will start to conjure an image of what it is like. For good or ill, these preconceptions are what effects the house prices in your area.
For example, an area that is associated with high-crime rates will probably have low house prices as this is not something that people will want to live nearby. However, there are many other elements in a specific location that will affect the property value.
Transport links, schooling opportunities, and job prospects are all involved in the desirability of a location. Sadly, you have no control over these factors. However, a quick chat with a real estate agent about the homes for sale in that area should give you an idea about what you can do to change this perception.
Do some research and be sure to mention the positive aspects when you show the place to prospective buyers.
Comps
A comp is a home in your neighborhood that has recently been sold. They are referred to as such because your home’s value will be compared to the prices that these properties were sold for.
Again, you have no control over this factor, but it is worth keeping an eye on who has recently sold their house and for how much. Too many neighbors accepting lower offers are going to reduce the cost of your home, so make sure you are prepared for this eventuality. On the plus side, they could also sell quite high so try to remain positive.
Size
The price of your home will be judged on size, and it is calculated in square feet. This area includes the floor layout and garden space; however, there is such a thing as useable space.
A garden is a great feature in a home, but many buyers will look at the size of the house and consider the garden as an afterthought. For example, a home that is sold at $200 per square foot where the house is only 1000 square feet will sell for around $200,000 even if there is an additional 100 feet of a garden out back.
It may sound unfair, but this is how initial house prices are calculated in the US. That is why so many homeowners choose to extend their property.
Upgrades
Remember What we said about useable space? Well, this factor refers to a lot more than the area of your property. Instead, many buyers will look at how they can use the rooms inside, and there are two key methods you should use to get the most out of your home.
In America, people view bedrooms and bathrooms as hot commodities. As such, the more of these styles of rooms you have in your house, the more you can expect to raise the asking price. Bedrooms and bathrooms can help to increase the property’s value.
Considering the cost comparison of each upgrade, you are better served to create an extra bedroom to raise the value of a property. Therefore, you should always try to market any unused rooms or office spaces as additional bedrooms.
Age
The sad reality of home ownership is that older homes have had to endure far more wear and tear than newer builds. What’s more, newer homes can adapt to modern appliances. What’s more, older homes are more likely to come with maintenance costs. Old pipes and electricity cables will always need updating from time to time for safety reasons, so those who live in an older property will most likely have to front these costs.
It isn’t all doom and gloom for older property owners, however. There is something to be said for architectural styles, something that is absent from all new build properties. Many people hit the market with a certain vision in mind.
Some buyers may prefer a home from the Victorian era, while others want something with a Georgina aesthetic. Either way, these homes are becoming increasingly rare so you may be able to raise the price of your home if you find the right buyer.
Status
Let’s face it. No one likes moving house. The prospect of living somewhere new is exciting, but there is a lot of work you need to do before you get to this stage. That is why prospective buyers will always look at a home’s status before they decide to put an offer down.
Property status refers to whether the previous owners are still living at the property before the big move. A buyer is far more likely to want to move into a home that is ready to accept them, which is why they will prefer a home that is empty.
Furthermore, you can provide prospective buyers with an inspection contingency. This contract is a declaration that states that the home is in a condition fit for living. This means that they do not need to carry out repairs or maintenance work. The buyer can just pick up their life in this new property.
Economy
The most unfortunate factor that affects the value of your property is the economy. As the world ticks forward, a nation’s economic standings will fluctuate depending on political matters and their standing in the world market. This fluctuation is known as inflation, and it can drastically affect the price of everything in the economy, including your home.
If inflation levels are low, then your home should receive a boost in value. This is because the economy is strong, and its residents have enough money to put into circulation. However, high inflation may reduce the cost of your home.
In this instance, it is better to wait until the market bounces back before you put it up for sale. Sadly, you have no control over the economy, but you can learn to predict it with the correct media. Try to stay informed on your country’s financial situation to find out the best time to sell your home.
Conclusion
The property market can be confusing to those who do not understand it. However, you should now have a firm grasp on what exactly goes into the valuation of your property. Some of these factors are out of your control, but there are ways you can affect the price yourself. Focus on the positives, and you should find you get the price you want for your property.
