When determining a homes value, real estate agents and appraisers use many factors. They do a lot of research to make sure the value they assess is going to either get your home sold in a timely manner, if it’s a Realtor(R), or make sure an appraisal is going to satisfy a banks loan conditions, if it’s an appraiser. These factors are important to keep maintained, and are even more important when you are looking at buying home, because some of them can’t be changed.
1. Location – The location of a home is un-changeable, and it’s also the most important factor in determining the value of your home. The reason location is the #1 factor, is because you can’t change where a home is located, and if the home is near something undesirable, the value of that home can plummet drastically. For example, say your home was built, and 5 years later your city installed a trash dump next to your home. The value of that home would go way down, as most people wouldn’t enjoy living next to a trash dump.
When you are in the process of buying a home, it’s a good rule of thumb to find out the zoning laws around your home. You can obtain your local zoning ordinances from your county assessor, or a local city zoning department. Be sure to find out what type of commercial buildings, or busy roads are planned in the near future for your area. Your real estate agent should also have a their ear to the ground, and should be able to educate you on the city plans for locations they service.
2. Condition – The condition of a home is something you can add to or take away from. The condition of a home is controllable, and can create great value if a home is well taken care of. The reason a homes condition isn’t as big a factor as the location is because some people don’t worry about the condition. Investors usually look for homes in poor condition, and they will upgrade or fix the home up to get a better value. This is called flipping, and there are a lot of people that will buy a home in bad condition to fix it up and sell it for more money. However, these buyers will pay a lower price, and you will not see a great value out of an investors purchase.
3. Curb Appeal – The curb appeal of a home can be determined by a number of things such as: New paint, landscaping, appealing to the eye, no garbage, clean look, and well maintained. The saying you can’t judge a book by it’s cover doesn’t apply to real estate. People will look at a homes outside, and judge it instatnly, even if the inside is very well done and the outside is average, it will still be hard to sell it. If you are planning on selling a home, it’s a great rule of thumb to clean up the yard, as curb appeal can not only increase your homes value, but it can also help your home sell faster.
4. Amenities And Upgrades – Those little extras can really improve the value of a home. Amenities such as granite counter tops, custom cabinets in the kitchen and bathrooms, master bathroom, walk in closets, hardwood floors, new tile, decks and patios, fenced yards, sprinkling systems, and new window coverings. These are the things you can do yourself to really bump up a homes value, but before you undertake a DIY project, it’s always good to consult a local real estate agent. Real estate agents can help you decide what upgrades are going to add value to your home, and which upgrades will bring the highest return on investment.
5. Local Market – All real estate markets are local, and no matter what the national news says, your value of your home is determined locally. When real estate agents and appraisers assess the value of your home, they use recently sold properties as comparables. Each market is different, and determining a homes value is a science. Ultimately, your homes value is worth as much as a potential buyer will pay for it, and the real test to a homes value is to put it on the market and see what you can get out of it.
Lisa Udy is a real estate agent with The Lisa Udy Team. If you live in Northern Utah, you can find Smithfield Utah Real Estate or Smithfield Utah Homes on Lisa’s property website.
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