A home's value will fluctuate depending on a number of circumstances. From location, to how well you've maintained it over the years, you will want to find out what it's worth before asking a certain price.
Potential homebuyers might laugh at your asking price if they find out it's worth as much. Before you list your home on the market, it's worth taking into account factors that will have an impact on the property's value, which will then allow for you to ask a reasonable price.
Location is most important
The home's location is arguably the most important factor, according to Trulia, in a guest post for Forbes. For example, if the house you're selling is in a well-respected neighborhood with a good mix of residential properties, entertainment options and a good school district, it will be worth quite a bit. The value is in stark contrast to that of a home that may be located next to railroad tracks, which will have a lower value because of the noise factor.
It's difficult to do much to change this factor. However, you may have noticed your neighborhood gradually change over time. Houses near industrial-areas may start to see an increase in value if the area transitions to more residential-friendly.
In other instances, your home may receive a big spike in value if it's located in a neighborhood where many young professionals are looking to live. It might be worthwhile to keep track of projects and new home construction in your city or suburb to see if those will help drive up your home's value. Knowing the right time to sell allows you to ask for a higher asking price because location is so important.
Renovations can be considered a tricky project. While you want to upgrade your house, you may later find that your tastes do not match the tastes of potential buyers. While your personal choice is exactly yours, you must also prepare to encounter individuals and families who do not find your property attractive. If so, your home may sit on the market longer than you like.
The same idea applies regarding outdated renovations. Anything older than 15 years might be turn-off for buyers and can cause more of a hassle. Consider making some smaller upgrades to your home to boost the value. A full-scale renovation isn't needed, but changes that make the home more modern will suffice.
Size of the home
Your property's size and be both a blessing and curse. You will encounter buyers, perhaps those who have a large family, that will find the availability of space as a must-have. When families are looking to move, more likely than not they're hoping to have more space. They may even be willing to pay more for it.
However, large space can sometimes be seen as a negative, particularly in the wake of the housing crash. If the market doesn't support these large properties, you will have difficulty selling it, which entails constantly cutting the price to attract interest.
The size of a home can also parlay into the number of bedrooms and bathrooms. Too few can be a deal breaker for some families. An extra bedroom, for instance, can become an asset because it can be used either as a guest room or turned into a home office, for which taxes can then be deducted.
If, however, your house only has one bathroom, you might not get as much interest as you were hoping for.
Your home just doesn't have it
Sometimes, there are outside factors that are out of your control that can have an impact on the pricing. Homes that are near celebrity homes will be sought after and can fetch a high price.
Your home may have even been built with architectural finishes that are no longer in use, and haven't been for decades. These rare pieces can also boost an asking price.
Not every home will have these outside factors that can increase a value. Otherwise, there are other areas you can have some control over to ensure your home is valued properly.