Home valuation is a critical piece of any successful real estate sale. Specifically, it involves an accurate determination of the purchase price of a home. The homeowner successfully sells their place at a good price by valuing a property’s location, lot size, floor plan, and amenities. Balanced against the supply and demand for real estate in that particular neighborhood, an excellent real estate agent sets a reasonable home valuation.
Factors that Affect Home Value
An accurate home valuation involves several factors. When a real estate agent takes these considerations into account, a selling price is set. An accurate home valuation moves the property in a fast, efficient way that saves the seller money, aggravation, and time.
ProTip: a real estate agent with deep roots in the community is often the best person to perform your home valuation.
Location: The Biggest Home Valuation Factor
Emphatically, the phrase “location, location, location” can’t be understated regarding home valuation. Here are some factors to ponder when you determine your home’s valuation.
Without question, a community with a strong economy and a good mix of residential and commercial districts boosts a home’s value. Additionally, areas that are well maintained create a sense of civic pride, thereby increasing the desirability of homes in the community.
Local Neighborhood Amenities Support Home Valuation
For the most part, home buyers want quality and convenience. Therefore, considerations like nearby schools, grocery stores, gas stations, hospitals, and public transportation stations are factors in proper home valuation.
Residential Neighborhood Situation
Usually, homes with the highest value are situated in the middle of a block or in a cul-de-sac surrounded by homes of a similar style, age, and size. For instance, a community with an excess of rental properties decreases surrounding home values by 15%.
When it comes to value, it’s better to have an average house in a great location rather than the best house in a poor location.
By and large, younger homes sell at higher prices than older ones. That’s because younger homes meet the lifestyles and needs of modern life more manageably than their older counterparts. That said, renovated homes have a blend of charm and efficiency that new builds rarely afford.
Consider implementing Ginny’s list of top 10 common home improvements to add value, along with her trusted Naperville-area vendor list.
Generally, homes on larger lots have greater value than similar houses on smaller lots. Depending on the area, a big front yard is preferable to a large backyard. Similarly, the average lot size in a given neighborhood makes a difference. For instance, if most homes sit on an acre lot but a few occupy 5-acre lots, the more oversized lots sell for a higher price.
Additionally, land use regulation plays a part in home valuation. For example, suppose additional square footage on a lot is not useable because of land easements, drainage considerations, or zoning. In that case, the extra property won’t add much value.
Balanced against larger considerations like location and lot size, a residential property’s floor plan plays a part in home valuation. Here are three factors of a floor plan that boost a home’s price:
A Kitchen That Opens to a Gathering Space
Few homeowners want to feel trapped in the kitchen while everyone else has fun. Therefore, a kitchen that flows into a den or living room fetches a better price than a self-contained one. It’s fine if a large archway or opening separates your kitchen. The important factor is that it’s easy to see, hear, and talk with visitors while you use the kitchen.
A Master Suite
A big bedroom with an ensuite bathroom adds value to a home. Today, buyers seek a big bathroom with a soaking tub that is separate from a shower, along with dual vanity sinks. If there’s a walk-in closet in the mix, your home’s value goes even higher.
3 to 5 Bedrooms
Although families are smaller, home buyers like to have options when it comes to bedrooms. A residential property with 3 to 5 bedrooms is highly desirable because it allows for family growth, guests, and office space.
Amenities Can Determine Home Valuation
Regarding home valuation, specific amenities add value to a residential property. That said, it’s a good idea to mention these conveniences in any sales materials and listings, as they can draw serious buyer attention to your home. Additionally, play it up if your home is near these amenities!
Open Recreational Space
Whether your home is near a nature area, golf course, public park, sports field, or tennis court, its value increases. Of course, the better maintained an open recreational space is, the more value it adds to your home.
Big Box Retail Stores
If your home rests within 1 mile of a big box retail store like Walmart, Target, or Home Depot, it’s a definite plus. That’s because today’s buyers feel that nearby shopping outlets significantly improve their quality of daily life. Therefore, a smart home valuation will take this amenity into account.
The ability to walk to schools, parks, and stores is a big factor in home valuation. When residents of all ages feel connected to their community, the value of surrounding homes increases. Therefore, don’t neglect a good walkability score when assessing your home valuation.
Professional Sports Arenas
Homes within a 2.5-mile radius of a professional sports arena are generally greater in value than homes outside that area. Of course, traffic and parking issues can mitigate this amenity, but by and large, proximity is a plus for home valuations.
By all means, community gardens are a big amenity for home buyers. If your home is located within a 1,000-foot radius of a community garden, the value of your home is increased considerably. Play it up in your listing descriptions.
Neighborhoods with mature tree growth are highly desirable, especially compared to developments swept of greenery. Therefore, consider mature, healthy trees during your home valuation. For the most part, buyers pay more for a property that has mature trees on its lot.
Expert Home Valuation from a Real Estate Agent
In effect, many factors go into an accurate home valuation. As a result, it helps to hire a real estate agent with deep roots in your community. As a real estate advocate and guide that educates sellers to make confident decisions, I can help with your home valuation. So don’t hesitate to get in touch to get the ball rolling. I’m ready to expose your home to the biggest audience, so it attracts the most offers. Let’s begin!