If you are buying or selling a home, its value is based on what someone else can pay for the home. In this case, different factors influence the cost of a home. For instance, you might prefer locations such as around schools as well as proximity to workplaces as determinants of home value. If you are not sure, below are some crucial factors you should check to know the value of your home.
One of the leading indicators of your home’s value is the price of similar properties sold around your neighborhood. Whether you call an expert to do an open-door evaluation or a home appraisal, your home value is more likely to be similar to homes sold around your neighborhood. When finding similar comps, it is essential to consider several aspects such as distance, feature similarity, and time of sale. Since all comps might not be the same, it is always vital that you consider all similarities and differences before weighing your value. At times, you might need to assess the value of each feature in your home.
Size of Your Home
Size is a crucial element when estimating the value of your home. In most cases, bigger homes have a higher market value than smaller homes. The cost of your home can be measured using the price per square foot. This involves measuring the size of your home and multiplying each square foot by a set market price. Determining the amount of usable space is also essential. In most case when doing home valuing, unfinished basements and attics are not considered usable spaces.
Life of Your Home
The life of a home mainly refers to the age and condition of your home. One main rule of the market is that newer homes always have a higher market value than older ones. This is because many people assume most home appliances and equipment are new hence are less likely to fail. Besides, new homes also have warranties that last longer than homes that are already used. Also, many people who aspire to own homes look for new homes, and some will prefer to add an inspection contingency in the contract. The inspection contingency is vital as it will help in negotiation if your home requires repairs in the case of a home under use.
Location of Your Home
Location is one of the most crucial factors that you should check before buying your home. If you have a big family with kids, indeed, you must check the proximity to a school. Also, if you are moving to find a new job, employment opportunity is an aspect you should always check. On the other hand, you confirm the proximity to the shopping center and other entertainment sports in the area. All these factors are important and bring the difference as to why some areas command high prices while others do not. If an area has all the aspects fulfilled, it will definitely cost more.
When assessing your home’s value, you must keep in mind all these factors to ensure that you don’t make regrettable mistakes. Always consult an expert if you have any questions about your home for a good sale.