Factors influencing home values are the major factors a buyer would like to know before investing. Real estate is all about ‘Location, Location, Location. The same is the case with real estate, as selecting the right location after analyzing the influx of potential homebuyers can make a big difference in sales compared to any other place. Ever wonder what factors influence home value? In this post, we look at the top five factors driving home values.
What Causes Home Values To Change?
Many factors can affect home values. The quality of the neighborhood, the condition of the house, and the proximity to schools and parks are some factors that affect home values. When looking for a home, you should consider these factors when making an offer on a property.
Home values are also affected by external factors such as inflation, interest rates, and the unemployment rate. The top few listed below are some of the most important:
1. Proximity to Conveniences
Proximity to conveniences, such as grocery stores, gas stations, restaurants, and shopping centers, can significantly increase the value of a home. This proximity also makes it easier for new owners to sell their homes in the future.
2. School Districts
It’s no secret that good schools can significantly increase a home’s value. When choosing a neighborhood or community to live in, you must consider where your children will attend school. If you’re looking at foreclosures in Arizona, check out AzRetrieval for more information on finding foreclosure listings in your area.
3. Lot Size and Layout
The lot size and layout can significantly impact how much your home is worth. If there’s not enough room for parking or other vehicles, it could considerably lower your home’s value.
4. The Floorplan
The Floorplan is the first thing that potential buyers see. This is why it’s essential to have a well-designed floor plan that makes the most of your home’s space. You don’t want to give buyers the impression that you didn’t care about making the most of your home’s layout.
5. The Neighborhood
The neighborhood is essential in determining home values and how much people are willing to pay for a home in a particular area. If you live in a great neighborhood, there are likely many other homes worth buying. If your house is in an undesirable or unsafe community, then it will likely be difficult for anyone to want to buy it.
6. Size Matters
Of course, size matters when determining a property’s value — but not necessarily because larger homes are more expensive than smaller ones. According to Zillow, bigger homes have higher maintenance costs, which translates into higher utility bills. So, if you live in a small place with high energy costs, you may want to consider downsizing before buying another house just because it’s bigger.
7. Location Is Everything
Where your home is located can affect its value by as much as 60%, according to Trulia — so if you’re looking for an easy sale, consider moving closer to work or public transportation (if possible).
So, while the naked eye might not be able to pick out these details, several factors can impact the property’s value. If you’re planning to sell your home or get a loan on a new property in Arizona, it’s essential to consider the land and its overall desirability. Doing so can help ensure the property is worth what you need it to be worth.
We’ve outlined the 7 essential factors that influence the value of any home, which should help put you in the ballpark when estimating your home’s market value. Enjoy!
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