Not all factors carry the same weight for each buyer when it comes to your home's value. There are some basic factors that weigh heaviest overall. In the long run, your home value is based on the market and what buyers are willing to spend.
We took some of the guesswork out of it for you. See what we know to be the TOP FIVE FACTORS that determine your home's value:
1. Size and Space
Square Footage is a large determination in calculating the value of a home.
Livable space is where we see the most influence with appraisers and buyers. The price of your home and the usable square footage go hand in hand. Generally, garages, attics, and basements are not considered in the calculation of usable square footage. The number of bedrooms and bathrooms are usually what determine your home’s greatest value. And those will be where you will want to start with your upgrades.
2. Interest Rates
Here’s the skinny:
The Federal Reserve is responsible for setting the funds rate. Banks are required by the Federal Government to keep minimum funds on hand (reserve requirement). The Federal funds rate is the interest rate that banks charge other banks for overnight loans. When the Federal Government lowers fund rates, banks have the opportunity to pass those savings on to customers, resulting in lower interest rates. This usually leads to more buying and economic stimulation. When more people are buying with less inventory on hand, the market becomes a ‘Sellers Market’, which leads you to the opportunity for a higher price for your home listing. When rates are as low as they are now, depending on your area, you are ripe for a bidding competition on your home!
3. Your Local Market
The number of buyers in the market in your area can greatly impact the value of your home. We are experiencing our own boom here in Western North Carolina and in the Upstate of South Carolina. With fewer sellers than buyers in the market, we are experiencing what is known as a ‘seller’s market’. Sellers are getting top dollar for their homes right now based increasingly on low inventory and high demand and buyers ready to relocate to our beautiful area! Jump over to this page to get some quick insight as to how you can take advantage of this market and get the most out of your home.
4. Age and Condition
Most buyers are looking for the peace of mind that comes with a newer home which leads to newer homes holding higher value. A move-in-ready home is appealing to buyers and could lead to more money in your pocket. Your home isn’t newer, but has been well maintained? Repairs and records are key to keeping you home in tip top shape and maintaining a top value.
5. Updates and Upgrades
If a home is well maintained with upgrades, updates, and replacements, this bodes well for your selling power. A home pre-inspection can help you determine what repairs and replacements you should make in order to get top dollar for your home. Take a closer look at our blog, Get Your Home Ready to Sell This Spring to get guidelines for getting your home in tip top shape.
These five factors are what we know to be true, and in our experience, have been what we advise our Clients on when it comes to getting the most for their home. Take a peak at our testimonials and see why we are trusted with selling and buying in Western North Carolina and The Upstate of South Carolina.
Moving to Asheville or one of its surrounding communities? Or moving to Upstate South Carolina?
We’d love to help you buy or build a home in the mountains of Western North Carolina or the lakes of Upstate South Carolina! Contact us to let us know you’re considering a move and we’ll let you know about new listings that fit your criteria whenever they become available. You can also view the current listings in the neighborhood, and sign up for new listing alerts to stay in the loop.