Property values are among the most important facets of real estates. Agents monitor property values religiously, using them to get accurate projections for sales and other parts of their jobs.
According to research findings, Hawaii has the highest average home value in the entirety of the United States, with homes going for approximately $646,000. Meanwhile, in the continental United States, the state with the highest average property value is California. Homes in the Golden State have an average value of over $579,000.
When you’re selling your home and property values aren’t ideal, you can wait it out until the market improves; you can also work with a company that can sell your house quickly. Or you can improve your property values through home improvements. But there are several factors that increase or decrease property values that can be very difficult to affect.
Below are some of the most important factors that can affect your home’s property value.
Every real estate agent knows the adage about location. This factor can improve your home’s property values in many ways. For example, properties closer to commercial centers or sources of employments can be very lucrative. The same can be said of properties in location with stunning natural landscapes such as beaches. Barring massive construction efforts or new developments, there is no way for homeowners to affect this factor.
The state of the neighborhood around your property can affect its value. No one wants to move into a neighborhood that’s falling apart or is plagued by criminality. People want to live in safe and comfortable communities. According to one study, a reduction in violent crime around your community can increase housing values by as much as .83 percent the next year.
How many acres or yards your property covers can have a big impact on its value. But the price increase brought on by property size varies on the location of your home. For example, larger properties may be very expensive in the city, where space is at a premium due to urbanization. On the other hand, a large property that’s expensive in the city may be little more than average out in the country.
This factor applies to structures such as the house and not to the ground itself. Older properties tend to have outdated fixtures such as wiring and pipes. These can be very charming or very expensive to replace. On the other hand, some older properties actually increase in value because they become rare or have historical value. This factor is linked with condition.
Although its true that some older properties increase in value because they’re rarer or historic, this can depend on the condition of the home in question. While a Victorian-era mansion can be very charming and amazing, if the home has been severely damaged by time and weather, it becomes very expensive to fix it up. The condition of the home can also raise the question of its habitability. Leaking roofs are one thing but corroded or exposed wiring is a fire hazard and a danger to the inhabitants.
6. Energy Efficiency
A Gallup poll revealed that more and more Americans are supporting energy conservation efforts. In one poll, approximately 57 percent of respondents say they prefer energy conservation to production. This trend means buyers are on the lookout for properties that have energy efficient wiring and features. These features can be photovoltaic cells, efficient insulation to reduce on heating costs and energy efficient light bulbs. Aside from their reduced impact to the environment, energy efficient homes can also decrease utility bills and help their owners save thousands of dollars.
There are two ways appearance that can affect your home’s property value. If your home has a sagging roof, peeling paint and an overgrown lawn, this can overlap with condition and raise questions about the cost of renovation and the safety of your property. You can remedy this by renovating the property on your own. On the other hand, if your home is built in a style that’s gone out of fashion or with materials that are no longer attractive to the public, you need to remodel, which can be more expensive.
8. Market Demand
Finally, the whims of the market can be one of the most powerful forces that can affect property values. For example, a financial crisis that affects most of the public can make people avoid expenses such as buying new homes. This can greatly reduce the price of properties across the board as sellers become desperate to get rid of their listings.
Keeping an eye on property values is a strategy for clever homeowners. Ensure you get the best price for your home when you decide to sell it by monitoring these factors carefully.