25 FACTORS THAT IMPACT YOUR HOME VALUE
Understanding the value of your home is a journey through various intricate factors. It’s more than just about the location or the size; it’s about the aesthetics, the neighborhood dynamics, the unforeseen challenges, and the improvements you’ve made or failed to make. Each element, from the color of your walls to the availability of broadband access, molds the perception of potential buyers and hence, the valuation of your home. This guide aims to unravel 25 pivotal factors that significantly impact your home’s market allure, offering a deeper insight into what makes your home tick in the eyes of potential buyers and the real estate market.
THINGS YOU CAN’T CHANGE (BUT CAN MARKET AROUND)
Street name:
Live on “Wimpy Way”? Street names may stick out to potential buyers and be a detractor. You can’t change it. You can (a) make light of it or (b) downplay it in your marketing.
A neighbor’s home:
Live next to a hoarder? You may not be able to conceal that fact, but you can direct attention elsewhere by pointing out “nearby” amenities or positives about the neighborhood.
Power plants or landfills:
Close to utilities? These can lower your property value. While you can hide any aspect of your home or location, you can build up all the positives that offset some of the negatives.
Nearby foreclosures:
Comps are a big deal. If there are numerous, visible foreclosures and eyesores near your home, you’ll have to go the extra mile to amp up your own curb appeal and show off in comparison.
Neighborhood:
School systems, neighborhood reputation and other dynamics will invariably impact how potential buyers feel about your home. These are unavoidable, but your home still has value!
AESTHETICS
Bright colors inside:
School systems, neighborhood reputation and other dynamics will invariably impact how potential buyers feel about your home. These are unavoidable, but your home still has value!
Bright colors outside:
You may love your hot pink shutters and door, but your outdoor paint is also a point of consideration for curb appeal and home value.
Excessive landscaping:
If you are a horticulturist, you may love the proliferation of spidery plants and unique vines. The maintenance this implies for homeowners could be a turnoff.
Dirty driveway and sidewalk:
Dirt and residue on a sidewalk and driveway can make your home look dingy or older than it is. A little pressure washing can go a long way.
Dirty roof:
Same goes with a roof. It may look older than it is if it’s caked with gunk and grime. Get it professionally cleaned and you’ll get fewer questions about how old it is.
POSITIONING
The lot:
Corner lots may sell for more and where you are on a lot can be used to promote a higher value. Some people love the phrase, “eastern facing windows” in a home description.
Major roads:
If you are near highly trafficked roads, it can be a drawback for some buyers. Talk up new windows or other ways the home is shielded from the noise and busyness.
Nearby neighbors:
If you have a lot of renters in your neighborhood, it may be less appealing to future buyers.
Major airports:
If you are near an airport, buyers may be afraid of the noise. Instead, you can bill the home as “commuter friendly”!
Near a cemetery:
Some people are superstitious or just don’t want to live near a cemetery. The good news is, cemeteries are often beautifully kept pieces of land. For the right buyer, this can be a benefit.
UNFORESEEN CHALLENGES
Energy Inefficiency:
Homes lacking in energy-saving features may deter buyers looking for long-term savings. Energy inefficiency could lead to higher utility bills, making the home less appealing.
Broadband Access:
In today’s connected world, reliable high-speed internet is almost a necessity. Properties with strong broadband access are often more appealing to buyers, making it a crucial factor in home valuation.
Invasive Species:
Presence of invasive plants or animals can be a deterrent as they often indicate higher maintenance. Addressing these issues and marketing a well-maintained garden can alleviate buyer concerns.
Unpleasant Home History:
A home with a negative history can impact buyer perception adversely. It’s essential to address and rectify any lingering issues, and possibly reframe the narrative around the property.
High Crime:
Residing in high-crime areas can pose safety concerns, which may lower home values. Highlighting security measures installed in the home can be a way to mitigate some concerns.
IMPROVEMENTS AND ALLOCATIONS
Pollution:
Proximity to pollution sources can significantly affect a home’s value. Ensuring and marketing a well-ventilated and air-filtered home can help in such situations.
Flood Plain:
Properties located in flood plains may be seen as risky investments due to potential water damage. Properly installed and marketed flood defenses can mitigate these concerns.
Over Improvements:
Over-customizing a home can deter buyers with different tastes, making it hard to recoup the investment. It’s better to aim for broad appeal when making improvements.
Niche Improvements:
Specialized additions may not appeal to all buyers, potentially limiting your market. Ensuring a balanced mix of niche and general improvements can broaden the appeal.
Space Allocation:
Poorly planned space can make a home feel cramped or inefficient. Highlighting a flexible layout or potential for reconfiguration can be enticing to buyers..
Navigating through the labyrinth of factors that impact your home’s value can be overwhelming. However, understanding these variables empowers homeowners to make informed decisions, be it for selling, renovating, or merely appreciating the value of their abode. While some factors are fixed, many can be mitigated or enhanced to favorably position your home in the market. This is where our team steps in. With a profound understanding of the real estate landscape and a knack for marketing homes effectively, we provide tailored solutions to navigate around the unchangeable and accentuate the positives. Our goal is to assist you in maximizing your home’s market potential, ensuring a smooth and successful real estate journey.
