3 Things that Affect Home Values

The goal of every seller is to get the most money for their home. However, there are many factors that can affect how much you get for your property.

This article will show you what you need to do before listing your home and some things that might come up while selling.

What to do before listing your home:

-Do a walk-through of your home and make sure everything is in working order and clean.

-Create a list of any repairs or improvements needed for the house.

-Take photos of the inside and outside of the house, so potential buyers know what they are getting into.

-Make sure all appliances work, including heating and cooling systems, water heaters, smoke detectors, etc.

However, despite doing all of these things, there are also factors beyond your control that could and will affect the value of your home. If you’ve been wondering, “What is my home worth?” then this article will show you how to think about your home value.

Comps

Competition in a given market can significantly affect the price of a home. A study revealed that homes in areas with more than 50% of homes for sale and are on the market for more than a month are priced about 1% below the median list price. This is because sellers are trying to compete with each other and get their home sold quicker.

In contrast, homes in areas with less than 20% of homes for sale on the market for more than a month are priced about 5% above the median list price. Sellers in these areas have less competition and they don’t need to lower their prices to compete with other sellers.

The Location

Location is one of the most important factors in determining the value of a property. When looking at a home, it’s not just about what the house looks like or how big it is, but also where it is located.

For example, if you’re looking to buy a house in an area with high crime rates and low-quality schools, then you’re going to pay less than someone who wants to buy a home in an area with high-quality schools and low crime rates.

The same goes for proximity to highways and other amenities. Noisier areas might also command lower prices than quieter areas because most people enjoy their privacy.

Interest Rates

Interest rates also play a major role in the value of a home. When interest rates are high, the value of property decreases. This is because people are less likely to purchase homes when they have to pay more for monthly mortgage payments.

Interest rates affect home values by influencing the amount that people can borrow from banks and other lending institutions. When interest rates are high, it becomes more expensive for people to buy homes and so they turn to renting instead.

These are some of the top factors affecting real estate values, so keep them in mind as you prepare to sell your house.

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