In a neighborhood of similar homes, why is one worth more than another?
That’s a question that’s befuddled buyers and sellers for ages, but the answer is simple.
Every home is different! When a home is sold, a willing seller and a willing buyer have just announced to the world the value of that home. From there, other similar homes are benchmarked, but other factors come into play. The most important are:
Location: The closer a home is to jobs, parks, transportation, schools and community services, the more desirable it is.
Size: Square footage impacts home values because they’re built using more materials. Larger lot sizes may mean more privacy.
Number of bedrooms and baths: Over time, median homes have grown larger. Decades ago, household members shared bedrooms and baths without complaint.
But today, families want more privacy. The median home purchased today is a three-bedroom, two-bath home.
Features and finishes: Features such as outdoor kitchens and spa baths make a home more luxurious. A home finished with hardwood floors and granite countertops is going to sell for more than a home with carpet and laminate countertops.
Condition: The closer in age a home is to new construction, the more it will retain its value. It’s perceived as more modern, up to date and perhaps safer. Homes that are not updated or in poor repair sell for less. It’s a good idea for homeowners to keep their homes as updated and in top repair as possible.
Curb Appeal: From the street, the home looks clean, fresh and inviting. Crisp landscaping with flowers won’t change the size or location, but it certainly adds charm.
When two homes are identical in the same neighborhood, a higher price may come down to something as simple as views, or paint colors or the overall taste of the homeowner. Valuing a home will never be an exact science, but if you bought wisely, kept your home updated and in good repair, you should recoup most, if not all, of your investment.
If you are looking to see what the estimated value of your home is, in our office we put together Comparative Market Analysis Reports that gauge the estimated price that your home would sell at by comparing it to homes that have sold in your area. If you’re interesting in selling your home, and you’d like to know its potential market value, call 800-449-6600 ext. 8414 today and we can schedule an appointment!
