What Factors Affect A Home’s Market Value?

There are many different reasons why people choose to put their house on the market. It could be empty-nesters looking to downsize their living space, or it could be a family moving to a different state. Whatever people’s reasons are, it’s important to get a house assessed by a home appraiser to figure out the exact value of the home before it goes up for sale.

Here are a few things home appraisers will factor in when valuing a home.

Square Footage

A significant factor that is used to appraise the value of your home is its overall square footage. A smaller square footage decreases the home’s market value, whereas a larger square footage means that you will get a better appraisal for your home. The distribution of useable and liveable space will also factor into the market value of your home. If your house has smaller useable spaces, then its value will decrease despite it having a bigger overall square footage.

Landscaping

You might not think it, but having well-manicured landscaping can actually increase the value of your home. Buyers will first be drawn to the various plants growing in your home’s front yard, so first impressions really matter — and do have an impact — when it comes to putting your house up for sale. Having a sophisticated landscape that includes deciduous trees, evergreens, and colorful plants can increase your home's value by 12%.

Location

A large portion of your home’s value will be affected by where your home is located. Depending on the neighborhood your home is situated in, its value could either increase or decrease. Where your house is located in a neighborhood also affect its value. Home buyers are usually on the lookout for homes that are in areas with low crime rates, as well as in proximity to schools, hospitals and other important establishments.

Age of the Home

The age of a home is another factor that appraisers use to assess how much your house should cost. But the thing is, newer homes won’t necessarily be priced higher than older ones. While homes that have been built in the last decade have better appraisal value due to the low risk of structural issues, older homes located in areas of historic importance or that have been well-maintained for decades can also fetch a high appraisal rate.

Bed and Bath

The number of bedrooms and bathrooms your home has will also affect its appraisal value. If your home has 3 bedrooms and 3 full bathrooms, it’s more likely to fetch a higher price than a house with 3 bedrooms and just 1 full bath.

Structural Materials and Renovations

The materials used to build your house will also determine how high its market value will be. Houses built with dated construction materials are less likely to receive a high appraisal value compared to houses that have used contemporary materials to build the foundation of a home. In this same vein, the number of renovations and which areas have been renovated can also dictate how high the appraisal will be. If your kitchen and bathrooms have been recently renovated with better fixtures and materials, they will help increase your home’s appraisal value.