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7 Factors That Affect Home Value

What are the factors that affect home value? Whether you’re thinking of buying or selling a home, understanding the elements that affect its value might help you navigate this processes a lot easier. Although the market value and shifts in the economy can impact real estate, here are a few factors to take into account to better understand how the value of property increases and decreases.

Location & Proximity

Firstly, and perhaps the most important of all key factors that affect home value is location. 

Property in affluent neighborhoods, low-crime areas, quiet zones, and high employment opportunity areas tend to sell at higher price points compared to those not offerings these benefits. Other sought-after amenities are proximity to good schools, shopping centers, parks, entertainment, and hospitals.

Property Size

The size of a property, including the number of bedrooms and bathrooms, is another determining factor of a home’s value. The more square footage, bedrooms, and bathrooms the higher the property value will likely be. Accessory dwelling units and other additions that increase the square footage of livable space like converted garages can also increase the overall value of a property.

Age & Condition

A potential buyer will likely not want to spend a portion of their budget on an aging home that may require renovations and repairs. Older homes tend to have more issues such as; plumbing problems, deteriorating roofs, fragile foundations, and even drafty windows that can decrease the overall value of a home. Anything that will likely need extensive repairs after purchase is an issue worth addressing before listing the property.

Amenities

Who wouldn’t want the luxury of an easily accessible pool, or a beautiful park nearby? Amenities are another key factor that has a substantial influence on home pricing. Aside from pools, other worthy amenity additions range from hot tubs, outdoor kitchens, accessory dwelling units, and even tennis courts.

Renovations

Home improvement and renovations are usually worthy investments that tend to yield positive ROIs. Remodelling outdated kitchens or bathrooms with contemporary designs and new appliances not only make a home more appealing but also more expensive. According to Remodeling Magazine, a renovation project can cost up to $18,206. However, if the hefty investment returns double or triple the amount upon sale, it is definitely worthwhile.

Landscaping

Is it worth spending money on landscaping? Landscaping features can add value to a property, especially if those features increase its curb appeal. Well-manicured lawns that are not overridden with weeds or dirt, as well as carefully trimmed trees and bushes, will make your home more appealing to potential buyers. On average, landscaping services cost between $4 and $12 per square foot. Creating a unique landscape on your property and curating every detail can make up for other faults the property may have.

Eco-Friendly Upgrades

Sustainable additions like energy-efficient windows, solar panels, and electric car chargers are attractive additions that can increase the value of your home. A single solar panel can cost anywhere between $2.67 and $3.43 dollars whereas energy-efficient windows can cost between $300 to $1,000 per window. Although costly investments, these additions pay for themselves over time in the form of savings on energy bills. Buyers will realize the savings potential and consider it when making their offer.

Takeaway

It’s always worthwhile making improvements and additions to your home if it makes you happy and increases property value. Consider these 7 options and see what works best for you. If you’re working with a limited budget, check out my video on selling your home with only $500!

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