Homeowners and potential home buyers need to understand the main factors that add or detract from the resale value of a home. Some things you can control, and others you cannot. So, keep reading to find out what you need to understand about location, home size and age, update potential, aesthetics and interest rates.
You may have chosen a neighborhood close to family or work. However, that doesn’t necessarily make the location desirable for potential homeowners. Primary factors that appraisers look for include the following:
- High-quality schools
- Proximity to potential employers
- Amenities such as entertainment, shopping and recreational venues
Neighborhoods with more of these factors typically have higher home values than surrounding areas. Overall, location has the biggest impact on your house base value.
Home Size and Age
Professionals use price per square foot to measure the value of a property. The listed square footage includes bedrooms, dining rooms, kitchens, living rooms and other main living areas. Attics, garages and unfinished basements also appeal to potential buyers. For example, a listing with 1,400 square feet of livable space may have an additional 600 square feet of garage space.
Real estate professionals and homebuyers also consider the age and condition of the property. So, if you have a 30-year-old home that needs a new roof, it won’t sell as fast as your neighbor’s home will, provided they have a roof in good condition.
Updates and Remodels
Homeowners who invest in their property will see dividends when they want to sell it. Pools, flooring and new kitchen appliances all raise interest for potential homebuyers. Investors and homebuyers also look at the potential of the property in terms of adding an extra room, pool or outdoor living features. In general, buyers want to personalize the space and investors look for potential that makes the property easier to sell.
Investors also buy properties with rental income units, which increase the investors’ overall capital growth and profitability.
If a property doesn’t wow a potential home buyer when they pull up to the curb, the potential for a sale sinks quickly. First impressions matter in real estate. So, it makes sense to spruce up the landscaping and entryway to attract the right kind of attention.
Interest rates impact the ability of the buyer to afford the property. In times of low-interest rates, homes sell much more quickly even with higher prices. If the Federal Reserve raises interest rates, that has an impact on the rest of the economy, including the real estate industry. Therefore, in times of low-interest rates, homeowners can expect multiple offers and potentially higher sales prices as demand peaks.
Contact Grand Homes in Dallas for more information on architectural trends that increase the value of your home. With over 30 years of experience, we can re-imagine your home for resale or your own enjoyment.