“What is my home worth?” It’s a question many of us have asked ourselves, especially if we’ve lived in the same home for a long time. The value of a home is a composite of numerous factors. Here are some of these central factors and how they can impact your home’s worth, both as an asset and a potential real estate listing.
- Location
It goes without saying that a house on a sunny, white-sand beach is going to be valued more than a house by an airport. The old adage “location, location location!” remains accurate when it comes to home worth. While this can be looked at broadly, and one can easily determine that a home in a resort-like area is going to be more valued than a rougher one, the issue of location can become much more nuanced. A nice suburb might have a resident who has a hoarding issue, with garbage piling up in the yard and a foul odor wafting down the street. This will lower the value of everyone’s home in the neighborhood. Maybe you live right near a railway, but the deafening sound is blocked out by innovation in soundproofing that was used to build your home. Factors in location can be complex.
- Condition
The condition of a home is the first thought when it comes to evaluating its worth. Problems can develop with houses over time that range from expected decay to unexpected problems that arise from it being constructed poorly. While a house can be repainted and get a new roof from a roofing company in Cincinnati to increase value, it can’t survive being built on an unsteady foundation or suffering a chronic, deadly mold problem for being built too close to a water source without proper insulation against flooding. Sometimes the true condition of a house is hidden in the buying process. While unethical, it is worth knowing that sometimes aesthetic improvements can be used to hide more insidious issues. Mold infestations can be addressed by hiring restoration professionals like mold remediation Denver to handle the problem.
- Neighborhood
Sadly, the factor of neighborhood “quality” is a big one. Why is this sad? Because it largely depends on economics and the financial status of the residents. People with more stable incomes are going to be able to invest more in their properties, maintaining the value of the home and benefiting the other homes in the neighborhood. Many people don’t have that luxury. The good thing about this is that it elevates your chances of finding a nice home in a more affordable neighborhood.
- Size
A micro-house is not a mansion. This is obvious. The size of the home will impact the value, but it’s worth noting that houses of comparable size can be priced drastically differently depending on the #1 reason above: Location. A quaint home in Westchester County in NY might get you a sprawling 5-bedroom house in Texas. Square footage and lot size will not only impact the value of the property overall, but also the taxes you will owe as well.
- Housing Market
The housing market ebbs and flows like any other financial market. The best thing to do if you’re looking to sell is to keep a watchful eye on it and strike while the iron is hot if you wish to move elsewhere.