There are 5 factors that affect your property values. These 5 are the following:
- Supply and demand: Let’s return to Economics 101. When a market has a high volume of buyers looking for houses, and there are just a low amount of houses on the market, this in turn pushes the property values up since there are few houses on the market. Contrary, the opposite is true too when there’s a low amount of buyers looking for houses and there are many houses on the market, this forces the prices to go down on houses.
- Upgrades and updates: Kitchen and bathroom improvements have the biggest effect on the value of your home. You might want to consider if you should have room, add another bedroom to increase your property value.
3. Location: Some questions to ask yourself: Is your home near to any transportation? Is it near a highway? Is it in close proximity to any shops? Near any schools/ University? Is it in a tourist location? The more sought after your home location is the more your property value will be.
This one will surprise you!
- Interest Rates: When the Federal Reserve decides to increase or lower their interest rate, lenders will follow suit and do the same as the Federal Reserve does with the interest rates. When the interest rate is lower, this increases the buyer’s purchasing power. When the lender decides to increase the interest rate, this in turn lowers the buyers purchasing power which will increase or decrease your property value.
- Your neighbor’s house: When you decide to put your house on the market, you want to consider looking at your neighbors’ house who sold their house within a one mile radius of where your house is located. Look at the houses that sold between 6 to 12 months ago when you decide you’re going to put your house on the market. This is a good indication of what your house is worth~ your house has increased, decreased or stayed the same.
It is important to know what your house is worth prior to putting your house on the market. There are some online tools which generally give you an idea of what your house is worth. However, it would be important to get the advice or speak with a professional Real Estate Agent who is familiar with your area, and familiar with the houses that sold in your area to give you a more detailed evaluation of your property value.
Check my YouTube channel where I explain in more detail all of these: