For many people who are considering selling or purchasing a home, the question of how much a house will likely fetch in a particular market is an important and often confusing issue. Here are just a few key ways that a home’s value is determined, and why these factors matter so much in 2019.
When discussing the values of different properties, it is worth remembering that the old adage in real estate that “location, location, location” is of primary importance in determining a home’s value is not an exaggeration. In addition to the state of the economy, location tends to trump other qualities that go into determining how much a house will cost on the market.
In a very real sense, the enormous emphasis given to location in the real estate world can sometimes appear counterintuitive to first-time buyers; in desirable neighborhoods, even run-down properties can sell for enormous sums. Indeed, individuals considering the purchase of a new home should be aware that great deals can be found in supposedly “unfashionable” areas where costs of living are low.
For example, a stunningly beautiful and historic house in many regions of the Midwest will often sell for a fraction of the cost of a condominium in a fashionable Brooklyn, New York neighborhood. Despite the fact that the same house in another area of the country will be worth less than $100,000, moreover, an unglamorous one-bedroom home in many areas of Silicon Valley will currently set buyers back millions of dollars.
While location tends to trump other factors in the determination of a house’s price, there are other ways that the value of a home can be increased. A house’s size and proximity to good schools will certainly be factored into its resale value. Moreover, sellers who maintain and update the interiors and exteriors of their homes will often make a great impression on potential buyers; when it comes to real estate, first impressions and “curb appeal” certainly matter.
Selling or purchasing a house can be a complicated issue, but understanding how a house’s location and condition can affect that house’s price can make these processes much easier to manage. For both buyers and sellers, taking the time to research the housing market can truly pay off in the long-term!