One of the most important factors that determine a house’s value is its location. Though how good the location is is subject to every buyer’s opinion, there are four factors that are consistently looked for by potential buyers:
– Quality of local schools. Research has suggested that the quality of local schools is often the most important factor for buyers with young children.
– Proximity to employment opportunities. Shorter commutes to work have been shown to increase happiness among the working class, and homebuyers take this into account while searching for a new home.
– Proximity to shopping, entertainment, recreation and other social centers.
– Access to highways, utility lines, and public transit
The number of houses on the market has a definite impact on your house’s value. When there are a lot of homebuyers competing for a small number of houses, it is considered to be a seller’s market. If a lot of people are trying to sell their houses, but there are few people looking to buy houses, it is a buyer’s market. The state of the current market has a direct impact on the value of your house, due to the concept of supply and demand.
If you are trying to sell your house in a buyer’s market, it is likely that you will need to negotiate with potential buyers, because you will be competing with many other homeowners. This will often result in you not selling your house, or selling it for a lower price than you originally expected to.
Conversely, if you are selling in a seller’s market, you can usually list your home for a higher price, as now it is the buyers who are competing for your attention.
Age and Condition
Your house’s age and condition play a large role in determining your house’s value. If your house is old and/or in poor condition, and will require a potential buyer to invest time, effort and money into fixing up, they will undoubtedly ask for a lower house price to compensate them for the inconvenience. Potential buyers are attracted to newer houses and houses in good condition because they would prefer not to deal with renovating their new house. Quite often, homebuyers are ready and willing to pay more for a move-in-ready home that needs no repairs, updates or renovations.
If you are looking to sell your house but it is in need of repair, it usually is well worth it to invest in making those repairs before listing the house, as it will enable you to sell your house for a higher price.