What Makes a Home More Expensive?
If you are shopping for homes, or are deciding what price to list your home at, you may be wondering why homes for sale that seem to be almost identical are listed at different prices.
The Top Contributing Factors to Home Value
When it comes to assessing the value of a home because of the location there are some factors that come into play. Factors of a location that increase the market value include its proximity to employment opportunities, quality of local schools, and proximity to other modern amenities.
Other factors that play into location are homes in highly desirable dream destinations such as on the water near another large tourist attraction.
Functional Space and Overall Size
The larger a home is, the more livable space it has, and the higher its market value is going to be. If a home is in the same neighborhood and looks almost exactly the same as another home, but maybe has an extra family room or an additional bedroom, this will increase the value because there is an increased ability to use it. If a home has a larger attic or crawlspace this rule does not apply.
Current Condition and Age of the House
Newer homes have less wear and tear on them, so they are appraised at a higher value. Additionally, if a home has been renovated with newer systems or upgrades this is assessed to have a higher fair market value because the need for replacement is further down the road.
Newer items are less likely to break down and cost the owner money to replace or fix.
Some upgrades and updates in homes can add to the fair market value of a home. For example, hardwood floors, tile shower walls and floors, granite or marble stone, smart features, and the like. All of these are seen as nicer items of higher value than finishes that don’t last as long or hold up as well such as carpet and Formica. The amount of value they add to the home is subject to the current desirability of the market and the area.
There are many factors that are considered when arriving at a home’s current fair market value and it is not uncommon for both buyers and sellers to wonder why some properties just a few doors away from each other can come in at different price points.
If you are unsure if a property is priced well or have questions about what price you should list your home, it is best to talk it over with an experienced local real estate agent. They can help you to determine if you are making a good buy or are listing your home for the right price to successfully sell it.
For more information on real estate on Sanibel Island or Captiva Island, please contact us at any time.