If you’re thinking about selling your home, you’ll obviously want to maximize your profits. There are many things that affect its value, with location one of the primary factors typically based on employment opportunities in the area, the quality of local schools, and proximity to shopping, dining, entertainment, recreational activities, and health care.
Of course, where your current house is located is out of your control so there’s not much you can do about that aspect. When asking, “What is my home worth?” and learning the answer isn’t what you hoped, these are the biggest factors that you may be able to improve in order to increase the value.
Smart and Eco-Friendly
Homebuyers these days are looking for smart, eco-friendly homes, and having smart appliances is likely to make a significant difference in the number of offers you receive and ultimately how fast your home sells and how much it sells for. In fact, a recent study revealed that 89 percent of home buyers searching today are looking for sustainable homes.
Smart appliances provide feedback on energy use that make it easier to monitor one’s consumption of energy and ultimately reduce the cost of utility bills too. If there are problems affecting efficiency, they can even alert you to those issues, like a dryer that tells you the lint trap needs emptying or an alert from your refrigerator revealing that the internal temperature is too low.
Condition and Age
While you don’t have control of how old your house is, you can make improvements to its condition. Homes that are newer appraise at a higher value as the roof, electrical, plumbing, and appliances probably won’t need repairing or replacing for quite a few years. Many buyers are prepared to pay top-dollar for a home that’s move-in ready. That’s why most will require an inspection contingency in the contract in order to negotiate repairs while avoiding major expenses in the near future.
To raise the value of your home, it’s important to identify key areas that need to be repaired or replaced before putting your home on the market. You might even want to have it professionally inspected to avoid big surprises.
Size and Usable Space
The larger your home is, the greater its value. While you may not be able to add another story or build onto it another way, perhaps you have an unfinished basement. That brings an opportunity to finish it which adds usable space, therefore increasing the value of your home.
How much it will increase depends on where it’s located; for example, if you live in Portland it will be about five times more valuable than if you live in Atlanta.
Certain upgrades can result in a big increase in value. For more expensive homes with a large enough property, adding a pool can be a great idea. For less expensive houses, a kitchen remodel can have a significant impact.
The Current Housing Market
Even if you have a home in the best location in excellent condition with high-end upgrades, the housing market will affect the value. If there are few buyers with many homes on the market in your area, it’s a buyer’s market; that lowers the value.
On the other hand, if there are fewer homes for sale and many buyers, it’s a seller’s market; that can increase the value. In most places, it is a seller’s market now which means it’s probably a good time to sell so you shouldn’t put it off for too long.