With our home the biggest investment we will make, we want that investment to grow. But while home values have risen since the crash of 2008, some homeowners might have an over inflated idea of what kind of price they can get for that home. For anyone who is considering putting their home up for sale, it is important to understand what can increase the value of your home today, including things we don’t have control over, and what we can do to make that house worth more on the real estate market.
If you are considering some investment in renovations before you sell, think before you spend. While some things are a constant when it comes to valuing a home, some renos are simply a big money pit with little to show for all that time and effort. Here are four factors that will always play a role in deciding the value of that home.
Location is Always Key
There is a reason that location is the prime factor most prospective buyers will name when it comes to choosing that next home. After all, if that lovely three-bedroom home looks out over a field of bolted steel tanks for grain storage along the railroads, then you are going to have a hard time convincing anyone this home is worth buying. Sometimes a small bungalow in a pricey neighborhood will go for an astronomical price not because the house is worth so much, but because the land is valuable.
For families with kids, the location of the nearest school may drive whether that home is located where they want to raise their kids. Many realtors name community as a driving factor for many home buyers, reflecting the growing interest in gated communities and the desire to be part of the neighborhood where they live.
The Walking Score
As more and more young couples value getting around without a car as much as possible, many home buyers are looking at the walkscore of a neighborhood to help in their decision. In fact, many young buyers are saying they don’t have a car and don’t plan to buy one soon.
They want a lifestyle that let’s them use local transit to get to work, walk or bike to local shops and feel safe when they walk the neighborhood at night coming home from a night of entertainment. Both millennials who are starting out and empty nesters who are downsizing are looking for this walkability in their next neighborhood and will pay to find it.
While not everyone wants a huge eight-bedroom mansion, many families with kids will be considering the size of the home when shopping around. In fact, more and more young families are opting for smaller homes because they are easier to care for and you get more for your investment.
But just size isn’t enough, the layout of the house is also important. More families are looking for open plan houses that gives rooms a feeling of spaciousness even if they are small. As in everything, small is beautiful if it is well maintained, doesn’t feel cramped and can accommodate everyone comfortably.