Understanding home value is key when you are first starting out in the real estate industry. Whether you are working with a seller or helping a buyer negotiate, there are several ways to determine property value. This guide will break down some key factors that affect the price of a home.
4 Factors That Determine Home Value
You know that location is central to the real estate industry. Homes in populated and in-demand locations may have a higher market value. Factors like proximity to a body of water and distance from downtown can also play a role.
When estimating the value of a client’s home, compare their property to other homes in the area. The market changes quickly, so neighborhood data from the last six months can determine average sale prices.
While size isn’t the only determinate of price, it plays a significant role. Consider a property’s square footage and yard size when estimating value. The number of bedrooms and the size of the living space can also change the price. Larger homes aren’t always worth more, but this is often the case.
If a client has recently renovated their home or made major updates, this can drive up the price significantly. A new roof and newly remodeled kitchen will be attractive to potential buyers. When helping a buyer put in an offer on a new home, consider how new renovations could attract more competition. Amenities like pools, decks, sheds, and full additions can also increase real estate value.
4. Inspection Results
The condition of a home is always significant when estimating value, so schedule a home inspection. If the inspector finds that the home needs work, the value could drop. This is especially true for large features like the roof, plumbing, and HVAC systems. However, an impressive inspection report can be enough to boost the home’s value.
The team at EXIT Realty Upper Midwest has the tools necessary to help you understand the value of your home. As the fastest growing real estate firm in Iowa, this agency truly invests in its employees. You can expect free training, support tools, and employee benefits to help you find your way in the industry. To learn more about this firm and franchising opportunities, visit them online or call (651) 505-3570 today.