Everyone wants to know what their home is worth. Seeing what kind of equity you’ve been building over the years can provide you with a sense of security. Most importantly, though, it can help you determine your selling price and what you can afford to pay for your next home.
Various factors are involved when calculating what your property is worth. Of course, every estimate will vary slightly, but there are a few central components that generally predict the value of a property, which we’ve listed below.
This is a major external factor when determining your home’s worth. Areas with better schools, a strong sense of community, waterfront views, safer streets, and more amenities drive up house prices significantly. Start by looking at what other properties in your neighborhood have sold for. In some areas, the properties are all quite similar, so it is possible to get a relatively accurate estimate by simply completing this first step. However, other neighborhoods are filled with extremely unique homes, each with their own advantages and disadvantages. If this is the case with your area, this first step will provide you with a starting point, but you will need to do some more research.
Assess what favorable elements your home already has. For example, home buyers increasingly value having more bathrooms, so having at least two full bathrooms can be a big advantage. Also, family homes – which include 3 or more bedrooms – usually command a higher price tag. A home’s layout is also becoming increasingly important in home sales since buyers strongly prefer homes that privilege convenience. This includes items such as: having the laundry room on an upper floor near bedrooms, bathrooms with dual sinks, and walk-in closets.
As you would expect, square footage plays a major role in determining your home’s worth. This is not only relevant to the size of the structure, but also of the lot. In certain high-density spots, the lot is worth even more than the home. If you live in one of these areas, interior upgrades may not increase your home’s value as much as you may expect.
The age of your property will likely affect your home’s value in different ways. Although many buyers prefer new homes because they are clean and usually move-in ready, other buyers are looking for homes with traditional character. Nonetheless, the older a home is, the lower the value seems to be, since the presence of potential problems such as asbestos or sliding foundations will likely end up turning these “traditional” buyers away.
Everyone treats their home differently, which ends up affecting the price that buyers are willing to pay – especially if there are many homes for sale in your area that they can compare it to. Take stock of what upgrades you have made to your home that will be seen as beneficial to potential buyers: new or energy-efficient windows, up-to-date electrical systems, quality insulation (in colder climates), a finished basement, or updated landscaping. Similarly, take a good look at what your home needs to have done, and make sure to consider even more minor issues. Buyers tend to shy away from both smaller issues, such as carpet flooring, and major fixes, such as foundation issues.
Even if your home is in spotless condition, the legally-mandated disclosure that occurs prior to a sale might uncover the presence of lead paint, asbestos, mold, or a previous fire. In some states, laws even require you to disclose whether a crime has been committed on the property.
Even if your location is perfect and your home is brand new, you may still end up selling your home for less (or more) than you expect due to market conditions that are completely out of your control.
Valuing Your Arizona Home
While the external factors listed here are beyond your control, there are still various things you can do to increase the value of your home. If you want a second opinion, you can contact the Buy My House Now team and we can provide you with an estimate based on your neighborhood. At Buy My House Now we pay the closing costs, do all the repairs ourselves, and can close within 7 business days. If you are looking to sell your home, contact our team today for a free consultation!