The median home price in the US rose 10% over the past year, 20% in some of the larger metropolitan areas. The rise in home value has some real estate experts scratching their heads. It seems to defy logic given what was going on this past year.
Property evaluation takes a number of factors into consideration and it is how a house is priced. You may think you know your property value, but factors change depending on what is going on in the country or your local area.
How is a house priced? Factors, like location, demand in the local market, and time of year are used for determining sale prices of homes.
When you have had opportunities to buy and/or sell homes, you may have wondered, "How is property valued?". Stick with us to learn the crucial factors that determine your home's value.
1. The Neighborhood
It may seem like you're being nosy when you wonder what in the world your neighbor is doing with their landscaping, paint color, or cars on their property, but what they do with their home has bearing on the value of your home.
If you don't have a home owner's association to keep everyone in line, your property value may decrease due to poor upkeep on your neighbor's part.
2. The Condition of the Home
Stand back and look at your home from the street. How does it look? Does it have curb appeal? Does anything stand out that needs some attention?
What about the interior? Is it clean? Have you kept up with regular maintenance? Is it updated? Updated kitchens and baths are the most important rooms to consider and give a home a higher value.
3. The Location
Location, location, location...these are the three most important factors in determining property value. You can't change the location of your home, but the surrounding area may have changed due to rezoning, new buildings, etc.
It's important to stay in tune with what's going on in the area and to do what you can to protect your home value. Get involved in your neighborhood or town councils. Lobby for positive additions to the area and fight those that will negatively affect your home's value.
How is Property Valued?
Now that you have an answer to the question, "How is property valued?", you have a better understanding of how the selling price is determined when you go to buy or sell a house. Do your research before buying and selling so that you'll have a property that holds its value.
Do you know who can help you with all of your real estate needs? We at Nebraska Realty will help you find a place you can call home. We are the largest independent real estate company in Nebraska and Southwest Iowa. We are well-equipped to get the job done right while maintaining the personalized service you desire. Contact us today.