Factors in the Resale Value of a Home

The value of a home is determined by more than just the home itself.

When a homeowner looks to sell his house, several factors come into play when deciding on a sale price. First and foremost, he should look to be competitive in the overall market to give his home a chance for a quicker sale. Looking to recent comparable sales is a great starting point for most sellers in this process.

Neighborhood

When assessing the value of a home, an appraiser finds similar homes within a mile of the property. Similar homes have similar features, lot size and square footage. Averaging the recent sale prices of similar homes in the neighborhood can help a homeowner determine a good resale value for his home. However, if a neighbor's home has been sold as a short sale or foreclosure, this could negatively impact the value of his home, significantly.

Home Itself

The features of the home, itself, contribute greatly to the resale value of the home. Updated appliances and furnishings can increase the value, while older appliances and furnishings can decrease its value. Additions to the original home, such as more bathrooms or bedrooms, can also increase the overall value. Outside additions, such as a fence or pool, can increase value, as well. The condition of the home is a large factor in its overall value; if the home needs major repairs, this can dramatically lessen the value.

Market as a Whole

The value of a home can easily fluctuate from year to year, based on the market as a whole. If home values are increasing in your area and your home is in a desirable neighborhood, the price could rise dramatically, quickly. However, if the market as a whole is declining, you may have to place a significantly lesser value on your home for it to sell in a reasonable length of time.

References

• FinancialWeb: Home Equity Value: Factors Outside Your Control
• MortgageNewsDaily: Buying a House to Sell a House
• MortgageNewsDaily: Home Resale Value Factors