Buyers and sellers are always keen to know the value of a home before going into an exchange. Both parties need to know some of the basic key factors that affect the value of a home in order to get into an appropriate deal.
The location of a home pertains to the region, state, and neighborhood that the house dwells. A house in a generally expensive city such as New York will have a higher price tag than a similar house in Seattle. Location also entails the distance from the house to certain features such as the city, ocean, lake, and mountains depending on the geographical components of tat region. Houses in the city have a high price tag due to high demand from the working class and proximity to city amenities such as malls and restaurants.
State of the market
The real estate industry is quite volatile since it changes with regard to supply and demand, interest rates, general economic performance, and local performance of the market. A high demand of houses with low supply drives up the prices of homes. The Federal Reserve determines interest rates for loans such that when they set a high cash rate, the lenders increase mortgage rates. This makes the mortgages less accessible to a large population hence the demand for houses decreases and so does the price.
Poor economic performance in the country means that few people will be in the market to purchase houses hence the prices will drop. The local real estate market for a particular region may perform poorly due to factors such as natural disasters and insecurity hence the prices of houses will drop.
Size and amenities
In most cases, a large home is often more expensive than a smaller home in terms of square footage. However, other factors come into play. A two-bedroom condo in the city with a high investment potential will fetch more money than a four-bedroom single-family home in the suburbs. For condos and townhouses in Edmonds, the presence of amenities such as community gyms, pools, golfing course, and parking space increase the value of the condo.
Condition of the house
A house that is in good condition often attracts a price tag that is equal to its value. Potential buyers scrutinize a home to identify any repairs and renovations that will be necessary upon purchase. The need for several repairs and home improvements leads to a low offer price from the buyer since they factor in the cost of the changes and deduct it from the asking price. A seller should seek to correct serious functionality faults such as mold in the house, leakages, and poor conditioning since such factors put off buyers and have a negative effect of the value of the home.
Avoid making unnecessary renovations since some superficial factors may not be deal breakers to the buyers. However, if the house is very old, you should definitely modernize areas such as the kitchen and bathrooms in order to attract buyers.
It is often advisable to seek the services of a professional appraiser in order to confirm the actual value of the home in order to set an appropriate asking price or offer price for a home.