If you’re curious how to determine property value – whether because you’re looking to sell or interested your equity read on. There are 4 main factors that drive property value including age/condition of your home, the size of your dwelling, updates to your property and neighborhood comps. Far too often, people fall victim to online tools that are poor substitutes for a true comparative market analysis.
Age and Condition of Your Home
In my opinion, these are two of the biggest contributors to property value. Imagine – you’re in a neighborhood of similar-sized, well-maintained homes all built around the same time. There is one house that’s been left to age without upkeep – do you think they’ll be commanding top value if they go to market? (Sort of a trick question – because if there’s relatively no inventory – my example could be a bad one). When you look to online websites and they give home pricing assessments – the reality is – condition is likely the one attribute being overlooked. Age can also be a tricky barometer in pricing. We’ve all seen pristine antique homes able to command top dollar and yet far newer homes in dilapidated condition. Whenever and where ever possible, take the time and make the investment in your home to help sustain value.
Size of Dwelling and Heated Space
These metrics are important as they indicate how much of the home’s space is useable. When people buy a home, they are looking for utilizable space. With all other attributes equal, a home with more square footage will always sell for more.
Updates to Your Property
Updates to property can include both interior and exterior work. In some cases, keeping a home period appropriate in places yet modernizing other areas is the best approach. Let’s go back to the earlier antique example. Here well-maintained original wooden floors or doorways add charm and character. However, I’m sure most home buyers in 2023 are not interested in a 1850’s bathroom or inefficient windows. For newer homes, it’s important to look at trends and see how they relate to your property. While you may have bought your house new 20 years ago – it may be due for a facelift. Trends and colors are constantly changing which is what keeps the home improvement industry alive and well. Your home will benefit from updates to colors, materials, spaces and even places.
Neighborhood Comps
Neighborhood comps show what other similar homes are selling for in the same area. This is one of the best ways to see what the market is willing to bare when the time comes to price your home.
Property Value Looks to a Number of Features
Finding a true value for your home depends on a number of facts, figures and attributes. As an owner, anything you can do to maintain and enhance your property will likely impact the value of your home. My advice is to steer clear of super trendy updates that cater to a small demographic (think Barbie Dreamhouse inspired renovations from the summer movie). Unless of course your goal is a custom Air BNB. In general, neutral colors have staying power along with classic design elements. If you’re thinking about enhancements or renovations – grab a home design magazine or flip on HGTV. For bigger projects, I also recommend you look to professionals to help with the work. With some regular maintenance, sweat equity and investment, your property will be well-poised to command top price in your market.
If you are thinking of selling and would be interested in a comparative market analysis – specific to your home – please feel free to reach out. It would be my pleasure to complete a CMA on your behalf and share this information with you for pricing purposes or simply to have a rough idea of equity you’ve established in your home.