It’s safe to say we all know what would deter us from buying a particular home. If we were to harness those ideas and think about what would prevent us from buying a house, we can begin to make a list of what will factor into the resale value of our own homes. The resale value of a home is the amount the home is worth to potential buyers if you were to place your house on the market. Some factors influencing resale value are beyond a homeowner’s control and the factors also vary greatly from one consumer to the next. As you discuss your home’s resale value with your Realtor, it is important to remember it is time to put your best foot forward. The following are a list of general, and valuable, factors that play into the worth of your home.
Size and Location
The value of your home can greatly depend on its size. The square footage of your house and the acreage of the lot are two factors that play into how any home is bought and sold. Usually, the industry will break up the price of a home into dollars per square foot to help potential buyers envision the amount of space they’re getting for their money. Another important factor in determining resale value is the geographic location of your home. A house being sold in one township can fluctuate in the very next township due to taxes, costs of living, neighborhood, and proximity. The location of your home may be a great asset depending on who is looking into buying it. Your Realtor will be able to help evaluate the worth of the town, city and state in which your house is located.
Updates and Upgrades
When looking into the valuation of your home, it is essential to consider your home’s upkeep: how much work you’ve put into it to change its value. When was the last time you had your HVAC unit serviced? Have you considered replacing the carpet where you spilled coffee in the living room? When thinking about what factors influence the value of your home and the ability to sell it efficiently and timely, it might be time to ponder seemingly minor home improvements. Buyers will usually look for a newer roof, especially in older homes, and updated appliances and hardware in kitchens and bathrooms. Making these changes while you still own the home could pay off eventually as you can likely list your home at a higher price. Updated homes are both very appealing to the average consumer and add resounding resale value to your home.
While it doesn’t necessary increase the value of your home, offering a home warranty can be appealing to buyers and help seal the deal. Home warranties are different than home insurance because they cover repairs that may be needed after the sale has closed. The home warranty will cover typical home systems like plumbing, heating and air, and appliances that may conjure an unforeseeable problem. Many buyers will ask for a home warranty to be purchased as part of the closing costs. Many sellers will purchase a warranty, usually one that covers the buyers’ first year of ownership.
Appearance and Condition
The aesthetics and embellishment of your home will come into play when determining the resale value of your home. Buyers usually want a move-in ready home. It could be an effective idea to paint bright-colored walls a neutral tone, remove personal interior decoration and let the most natural light enter the house. This will allow the buyer to look at your home in an unbiased state and therefore, increase the value in their eyes. If the buyer can see that there is a clean slate and can approximate that there is not “too much work to do,” it can be worth their while! Curb appeal is also factors into resale value, especially if you have land that you are selling with the house. Maintaining sturdy roofing, clean siding and even a serviced fireplace can add value to a home when trying to sell. These points of upkeep will prevent the need to knock off dollar signs when pricing your house.
There are countless factors that affect each individual buyer’s opinion on the value of your home, but knowing the solid influences listed above can help you understand where to start. If you’re trying to sell in a seller’s market, it can be less overwhelming knowing you have maintained valuable factors that will come into play when putting your house up for sale. I hope you gained some good knowledge about resale value and continue to come back for more helpful tips and tricks!
Source: Ferris Property Group