It’s an exciting moment in your home search when you find that dream property and decide that you’re ready to submit an offer. However, you’ll want to know that you are paying fair market value for it. It’s essential to understand the major factors that influence the value of real estate, so you can work with your Realtor^® to put together a fair offer.

Real Estate Guide to Determining a Home’s Value

1. Comparable Sales

Comparable sales look at the recent sales in the neighborhood. Your agent can look at nearby recently sold properties that are similar in size. The amount that they sold for is a good starting point to determine the value of the home you’re interested in.

2.  Location

Because you can never change the location of a property, this has a major influence. The local school district’s ratings and the crime statistics are examples of factors you’ll want to research. Nearby amenities, such as shopping centers, parks, and freeway access, will all impact desirability as well.

3. Upgrades

Upgrades, such as renovations or brand new appliances, will increase the property’s value. Some upgrades provide a better return on investment than others, so your agent can help you determine their value. You’ll also want to check that all of the renovations are up to code, which should be checked during the inspection.

4. Condition

While newer homes tend to be worth more, older houses can maintain their value better when they are properly maintained. A property inspection is the best way to determine a home’s condition. It will tell you what repairs are needed and what systems will need to be replaced in the near future.

5. Size

More square footage usually means a higher value. Value can be estimated in terms of “price per square foot,” which divides the overall value of the home by the number of square feet. Real estate listings with more bedrooms and bathrooms or larger spaces will generally be worth more than a smaller home.

JoAnn Meier at RE/MAX First Choice is the local expert on the Waterloo, IL, real estate market. She’s been helping buyers find the right homes for sale since 1984. Her services include everything, from a targeted search to a negotiation with the seller. Visit her online to see some of the real estate listings, or call (618) 939-6003 to schedule a consultation.