What Determines Home Value?

by Bob Lucido Team

In honor of National Homeownership Month, we’re letting you in on some of the biggest factors that influence home value, and what doesn’t.

Essentially, your home is worth what buyers are willing to pay for it. Luckily, depending on what your home has to offer, buyers may be more influenced to buy your home than you might think.

We’ve outlined some of the most important factors that influence your home’s value and things that do not:

5 THINGS THAT DETERMINE THE VALUE OF YOUR HOME:

1. School District
A number one on most buyer’s homes is being zoned to good schools. Education is important especially to families looking to buy. Often, this even outweighs the size and condition of the home.

2. Square Footage
When estimating your home’s market value, size is important. Bigger homes can positively impact its valuation. The value of a home is roughly estimated in price per square foot - the sales price divided by the square footage of the home.

3. Updates
Making updates to bathrooms, kitchens, flooring, or adding outdoor spaces to increase usable living space can heavily increase your home’s valuation. However, upgrade ROI varies by location. For example, in some areas, finished basements can increase the value of a home by a lot more than they would in other areas.

4. Bonus Space
Pools, decks, offices, garages, hot tubs, basketball or tennis courts, home gyms, home theaters, wine cellars etc. all factor into your home valuation. Luckily, these spaces will add to the value of your home.

5. Your lot desirability/Community
This includes your location and neighborhood comparables. The price at which similar homes in your neighborhood have sold recently are a good indication of what you might get for your home. Appraisers also look for 3 things when determining the value of your home: the quality of local schools, proximity to employment opportunities, and proximity to shopping, entertainment, recreation, utilities etc.