4 Things That May Increase How Much Your Home Is Worth
- 1. Prevailing economic conditions
- 2. Proximity to the city
- 3. High-end neighboring homes
- 4. Upgrading your home
It is the dream of every homeowner to resell their home at a higher value than the initial buying value.
However, considering that the buyers are also looking for the best value for their money, sometimes homeowners are forced to settle for lower values just to please the buyer.
Nonetheless, you shouldn’t necessarily need to lower your home’s value to make the buyers interested.
If you are considering selling your home, you may need to understand two important underlying factors that influence how interested buyers will be in your home:
(1) First, according to recent research, the color of your bathroom and kitchen will be pivotal in the buyers’ decision, while interior decors with more blue shades tend to attract more buyers than those with white.
(2) Secondly, middle-class home buyers insanely love coffee shops (i.e. Starbucks or Mugg’n’Bean). In a different study, researchers found that a home’s value and marketability increases by up to 90% if it is within a walking distance from such a popular establishment.
With that in mind, which 4 things will increase how much your home is worth:
1. Prevailing economic conditions
This factor is a bit unfair because you aren’t in control of the economy, but it sure will be instrumental in the evaluation of your home.
Remember that potential home buyers also depend on the economy and if they aren’t doing too well, then you will be forced to consider low prices for your home, otherwise, no one will be interested in buying it.
Harsh economic conditions, in this case, can either be because businesses are struggling within your locality or because the employment wages have been stagnant for a long time.
On the flip side, the economy of a totally different region can favor your home’s resale value.
Think of a case where you live in an upscale neighborhood and just when you are planning to sell your home, a foreigner comes looking for a house within your neighborhood. It could be because the economy back in his home country has improved, making it possible for him to buy property abroad.
2. Proximity to the city
Citizens of most developed countries love their cities. The urban life is the bait that attracts many home shoppers from the countryside to the cities.
So, if you own a home near a major metropolitan area, be assured that it will fetch more than 35% more than what a similar home upcountry would cost. A suburban home would fetch up to 10% more than an identical house up in the farm.
Urban areas are also associated with good schools, more entertainment options, more employment options, and the best recreation centers. That is to say that if your home isn’t close to the city but the nearby town has the infrastructure of a big city, you may be at an advantage as well.
3. High-end neighboring homes
The value of your home might increase if your neighboring homes have a high resale value. Real estate agents often conduct comparative market analysis between your home and the others in your neighborhood and then use that to estimate the value of your home.
If you have the chance of choosing your comparable homes, always choose the ones that were sold most recently because that will give the agents the best estimate of your home within the prevalent economic conditions.
Other important considerations to make include the location, size, age, and designs of the comparable homes. The more accurate your analysis is, the better.
4. Upgrading your home
If your home is old and has some outdated features, renovating your home might undo the resale puzzle.
Remodel your kitchen, redecorate the rooms, resize the garage, upgrade the heating and cooling systems, and replace the ceiling if necessary.
You can even redo the landscaping and repair the sidewalk, driveway, and anything that would change the outer appearance of your home for the better.
However, not all renovations will give you a 100% return after selling your home. Some may even end up being too costly and then fail to impress the buyers to the point of giving you better offers.
That is why before calling the agent, you need to consult your fellow homeowners, particularly those who recently renovated their homes and later sold them. Avoid any upgrade that will not help raise the value of your home in the end.