The number one question in your mind when you decide to sell your house is probably this one –“How much is my house worth?” While there’s no cut and dried answer to the question of home value, there are certain elements that are significant contributors to your home’s value. Here are the 4 major ones to consider.
- Location, location, location - While this aspect does get a lot of attention, it’s not just your home’s physical address that makes it more or less valuable, it’s also the condition of the surrounding homes, the quality of the neighbors, the amount of street traffic, and the quality of the school system.
- Aging gracefully? Yes, your home’s age factors into home value, but appraisers also take into consideration how well it’s holding up for its age. A home could be five years old and have taken a beating, or it could be 20 and in pristine condition. This matters.
- Bed and bath count -this is huge, but don’t assume that adding a bathroom, for example, will – in and of itself – increase a home’s value. These investments aren’t always recouped.
- Comparable Sales (aka Comps) - Nearby sales play a big part in your house worth. Is yours a similar size but more updated and attractive? This will help you. Is yours more rundown than your neighbors’, or sitting on a smaller lot? These will hurt, obviously.
There are other considerations that come into play when determining your house’s worth, but these are the 4 major players that can help you get a general idea of what to expect out of your home’s sale. It's important to remain as realistic as possible, too. I've seen a number of real estate transactions fall apart over the smallest things, simply because emotions were involved. When this happens, it rarely turns out better the next time around.