Q:

What determines a home's value?

A:

Quick Answer

Factors that influence the value of a home include location, size, layout, age, condition and upgrades. Trees in the yard or street may also add to the overall value of the home.

Continue Reading

Full Answer

One of the most important factors that influence the value of a home is location. This includes factors such as quality of local schools, price of neighboring homes, and proximity to highway and retail establishments.

Size and layout also play a crucial role in a home’s value. Larger houses do not necessarily mean higher value. Some home buyers shy away from large houses because of the cost of upkeep and effort required to take care of such houses. Some buyers also prefer larger bedrooms to more bedrooms, meaning that subdividing one room into two does not necessarily boost the home’s value.

New homes and historic homes that are well maintained and in livable condition generally command a higher price than homes built in the middle. Older homes tend to lose value unless they are considered to be of historical significance. A house that is in move-in condition typically sells faster than a significantly cheaper house that requires extensive repairs.

Lastly, renovations affect the value of a home, depending on the specific kinds of improvements. Appraisers often conduct feasibility analysis prior to renovations to determine the impact of the proposed improvements on the home’s overall value.

Learn more about Real Estate
Sources:

Related Questions

Explore