What Affects Your Homes Value?

by | Jun 11, 2019 | Home Values

I’m sure you’ve heard the question, “What are the first three rules of real estate?”  The answer that many real estate professionals will tell you is “Location, Location, Location.”  While this may be true, when it comes to valuing your home, appraisers typically use comparable homes with similar locations.  When the comparables have similar locations, what else factors in to a home’s value and differentiates the value of one home from the next?

  • Living square footage:

Several factors come into play when valuing a home.  One of the most important features of your home that affects value is the living square footage. Basically, the more living square feet you have, the more your home is worth.  There are some instances where a home can be over-built and have too much square footage.  However, most of the time, the more square footage you have equals more value.

  • Renovations and updates:

Another factor that can increase the value of your home is updates.  Renovations can improve both the quality of your home and the condition of your home.  I have seen investors purchase old, outdated homes and completely renovate them.  Originally the homes would have linoleum and carpet flooring, wood paneling walls, formica counters, stock built cabinets, etc.  After renovations, the homes have wood and tile flooring, sheetrock walls, granite or quartz counters, custom cabinets, etc. So, the renovations not only improve the condition of the homes (new materials) but the quality of the homes too (higher end finishes). 

  • Other important factors:

Several other factors can affect the value of your homes: lot size, views, bedroom and bathroom counts, covered parking, amenities, etc. 

Ultimately, the local market decides what factors influence the value and by how much.  It is important to have the assistance of a local real estate professional to analyze the market and to determine which factors are/are not important in your market area.  If you are considering buying or selling a home and want a reliable opinion of value, contact me at 337-254-2215.

Lane Duplechin, AGA

Candidate for Designation with the Appraisal Institute