No matter what the climate of the real estate market is, there are several factors that have been around forever that will have a direct affect on home values. Everyone is aware that an over abundance of foreclosure properties in a particular neighborhood will bring market values down while a shortage of homes for sale will bring values up. But are you aware of the other important factors that affect home values?
Location is a very important factor in determining home market value. The distance from the home to schools, shopping, highways, entertainment, attractions and public transportation can affect home values in a positive and negative way. A home that is right in the middle of all of the activity may appraise lower than one that is on a side street. Homes that are in a surrounding neighborhood may appraise even higher.
Condition of Home
A well maintained home will always increase a home's value. Curb appeal is not a not a fictitious thing. Cleaning up and maintaining the exterior of the home can make a big difference in appraisal value. If a home is surrounded by run down homes and yards, the value may very well be affected.
The demographics of a neighborhood can have a very big impact. A neighborhood that is populated with mostly younger families with children will probably not attract senior citizens and vice versa. Homes near industrial and commercial areas may adversely affect the value of a home. Crime statistics and the amount of rentals are also statistics that will affect value.
The interior of the home can also affect the appraised value. Newer appliances, upgraded cabinets, bathrooms, flooring and paint will have a positive affect on value. If these items are old, worn and outdated, a new buyer will have to do the updating and, therefore, will want to pay less for the home.
Any completed improvements made to a home will bring some increase in value. Eliminating rooms can decrease the value while adding rooms would add value (except when a garage is converted to living space). Very rarely will a pool return its cost in value. The best improvements are made in landscaping, privacy fences and upgraded bathrooms and kitchens.
No matter what you do, sometimes the market is calling the shots when it comes to market value. Therefore, it is wise to consider everything before investing money into a home that, due to other factors, may not pay back.