01/21/2020
KEY FACTORS THAT EFFECT REAL ESTATE VALUE
ESTATE VALUE
There are many factors that can help predict the price your home will receive when you decide to list it on the MLS.
PROPERTY LOCATION
We’ve all heard the phrase “location, location, location” but what does this mean in practical terms when it comes to property prices?
🏫 Quality of local schools is frequently the single most important factor for buyers with children of school-going age.
🏦Proximity to local employment opportunities is a very high priority for most employment-age buyers
🛍 Proximity to social, shopping and recreational centers is valued most by younger buyers but plays an important role in pricing for all home buyers.
UPGRADES AND UPDATES
There are some buyers that look to purchase a fixer upper, but most home buyers want a house that is move-in ready – and they are willing to pay a reasonable premium for that comfort. A new roof, for example, generally recoups more than 80 percent of it’s value when the home is sold.
INSPECTION REPORT
In prime real estate markets, buyers may forego their right to an inspection report but that’s a risk that most mortgage lenders won’t underwrite. For most buyers, mortgage financing is contingent on a favorable inspection (the banks don’t want to lend you money for a termite farm).
NEIGHBORHOOD COMPS
Comparable properties, sometimes called “comps”, sold in your area also impact your own home’s market value. Appraisers and real estate agents look at recent sales of homes with similar features to use as a benchmark against your home’s potential price.
APPRAISAL VALUE
The appraisal is the real estate industry’s formal process for pricing a property. All states require appraisers (for any federally regulated lender) be licensed or certified by an organization accredited
