You’d be surprised how often Real Estate agents hear “But Zillow says my home is worth…” Realtors have a lot of knowledge on their local area, the Real Estate market, and the condition of homes – they put a lot of consideration into a home’s value. Zillow doesn’t know whether a basement has been finished or new appliances have been installed, the condition of the other houses on your street, and how much buyer demand there currently is. While your “Zestimate” may be in the ballpark of what your home could sell for, there are many factors that Realtors consider when valuating your home.
1. Neighborhood The neighborhood your home is in can correlate with the school system, crime rates, and employment opportunities, which directly impact the home’s value. Another great indicator of your home’s value is how much the homes within your neighborhood have recently sold for – “comps”. Of course, no two homes are exactly the same, so each home’s features and updates will be taken into consideration.
2. Size & Space A home’s value is heavily estimated based on price per square foot. For example, if a 2,000 square foot house sold for $200,000, its price per square foot would be $100. The average price per square foot varies a ton depending on where you live. In New York City, $100 per square foot is unheard of. In other spots, that’s a pretty high price. Also, if some of this square footage is your garage, attic, or unfinished basement, it doesn’t count as “usable living space”, and is not factored in that price per square foot equation.
3. Age & Condition A newer home typically means newer appliances, electrical, plumbing, etc. This tends to be more attractive for buyers as it usually presents less risk of needing to be fixed or replaced anytime soon. If a home is brand new, almost new, or very updated, buyers are willing to pay a higher amount for that peace of mind and ability to move in without making updates or changes. As a seller, there are certain updates that you can make to your home that will increase its value, while some updates won’t have much overall impact on your home’s value.
4. The Local Market Your home value will be impacted by the number of other properties that are listed in your area, and the demand for those properties. If there is a lot of demand and not much inventory, it’s a seller’s market; if there are few buyers and many homes listed, it’s a buyer’s market. In a buyer’s market, sellers may have to plan on adjusting the price to attract more offers. The overall economy also affects your home’s value – slower economic conditions can lead to a struggle in the housing market and therefore a lower list price.
5. Nearby Features While the neighborhood itself has an impact on a home’s values, so do the nearby features. For example, if your home has easy access to shopping, dining, entertainment and major highways, you’re likely going to get more for your home than if it were located in the middle of nowhere.
If you’re curious about your home’s value, fill out this form on our website for a quick estimate. For a more in-depth analysis, let’s set up a meeting!