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These 5 factors will influence your Home
THESE 5 FACTORS will influence your Home Resale Value
Charles Reynolds
Are you buying, selling, or investing in the property market? One thing you must have emphasized on, or you will emphasize is the property value, or in other words, how much is the property worth? From the levels of supply to demand all through to specifics such as the location of the property, facilities around the property, neighborhoods, and planned infrastructural developments and projects, several factors will influence the worth of your property. Read on to find out what factors will influence the resale value of your property.
Location
Real estate is mostly centered around the location. Properties in San Francisco are differently priced compared to the properties in places like Sonoma! That is a fact. The location of the property is one of the most obvious factors that will influence the value of the property quite strongly. People will often choose to live close to where they work and where they have free access to facilities that expedite them to enjoy their free time, as such, properties in these areas are often pricier.
Additionally, the reputation of an area will influence the cost or the value of the property. There are some suburbans with a good reputation, which raises property values. The reputation of a place is often determined by unemployment rates, which then determines the crime rates.
2. Supply and Demand forces and Interest rate
In a market where there are many sellers than there are buyers, property values may be lower than where there is an excessive demand that outmatches the supply of the homes in the area. Additionally, the interest rates will affect the value of the home significantly. When the FED changes the monetary policy, this can influence the value of
the property. If the interest rates are raised, lenders will, too, raise the rates, which will affect the average monthly mortgage repayment by making it go up. Overall, this has a significant impact on property affordability, which reduces the bidding wars. The seller is forced to lower the price of the property, ultimately affecting the value of the property. Conversely, a reduction in the rate means a higher value for the property.
3. The economic outlook
This is another key factor that will affect your property value. Economic health is usually measured by economic indicators such as the GDP, the unemployment rates, manufacturing capacity, consumer expenditure, and the prices of goods and services, among many others. The overall performance of the economy will also have an impact on the property market. Supposing that the economy is experiencing strong growth, employment, and good labor conditions, more people can afford the properties, no matter the price. A good economic outlook translates to higher property values.
4. Home size and Usable Spaces
Home size and the available usable space will always influence the property value. A bigger house can positively impact its valuation. By now, you must know that the value of the home is roughly estimated at a price per square foot. The sales price is usually divided by the square footage of the home. The price that a buyer can pay for the square footage of the property will vary accordingly depending on several factors.
Additionally, the usable space in the home will influence the value of the properties. Garages, attics, and even unfinished basements are usually not counted as part of the usable space.
Pay attention to the livable space; this is what that most count and a factor that buyers will look at when making the purchase decision. Bedrooms and bathrooms are most highly valued. As such, the more the baths or beds your property has, the higher the value of the property.
5. Age and property condition
It is no brainer that homes are newer are appraised at a higher value. Newer appliances in the house will save the buyer the costs of replacing them, thus greater savings for the buyer. For instance, if the roof has a warranty of 10 years, the buyer can rest assured that over the next decade, they do not have to worry about their roofing. Compare that with an older home roof that may need a replacement. Most buyers are willing to pay more to move into a ready home. This also explains why most buyers require an inspection contingency in their contract; they want to avoid major expenses in repairs. If, as a seller, your home is in good condition, expect to demand a top dollar.
Final Thought
With these five major points, you can begin reshaping your home so that when the time comes to resell, you can demand a top dollar. Consider these five simple factors when pricing your home. Ultimately, you will be able to attract serious buyers and prevent your properties from staying longer on the market. To find out more about pricing your property to match the current market conditions, get in touch with Charles Reynolds. Charles Chaz Reynolds, Century 21 M&M Agent, knows firsthand the overwhelming and stress of selling and buying a home. For the past 19 years, he has help clients understand the process of buying and selling a home, also has help clients understand the process of obtaining a mortgage for purchase or refinancing. Charles has worked in the industry for 19 years. Fifteen years as a Realtor and Mortgage Consultant, four years as a Realtor exclusively. Additionally, for the past ten years as a Manager of multiple tax offices and prepared taxes. To learn more about Charles and how he can help you buy, sell or even invest in the property market in Fairfield, follow this link https://thepowerisnow. com/charles-reynolds/
