Accurately pricing a home is a challenge whether you are selling your current home or preparing to make an offer on a house for sale. During the process of buying or selling, it is crucial to understand the factors that affect a home’s worth. Working with a real estate agent is your first step to ensuring you will maintain a good handle on a home’s worth amidst the unpredictability of the real estate market.
Here are some of the common factors that will have an impact on the price of your current or future home:
Quality of Location
Location is one of the biggest influencers on a home’s value. Homes in less developed and more rural areas will often cost less than those in very developed urban areas. Furthermore, if a house is close to commercial areas, the price will usually be higher than a similar house in a residential area. Convenience plays a big part in the price of a home as access to shopping, schools, entertainment, places of worship and employment opportunities are valued and make day-to-day life easier. Quality school systems have a positive correlation to home prices whereas crime rates have a negative correlation to home prices. Good accessibility to highways and expressways is also a factor that can contribute to a higher house price as people value simpler commutes.
Condition & Upgrades
Some buyers intentionally look for properties to fix up and repair, but many home buyers are looking for a move-in ready home. Most buyers are willing to pay for the comfort of a home that is in quality condition and because of this, newer homes often sell for more than older homes. A newer home requires the least maintenance, but a well-maintained home may sell for just as much as a new home because condition matters. When pricing a home, it is crucial to consider the integrity of the foundation, plumbing and electrical work. Less crucial but still worth considering are the upgrades and special features of a home such as high quality fixtures, upgraded countertops and durable floors. Upgraded kitchens and bathrooms are among the most appreciated by homebuyers because such upgrades represent big expenses and time-consuming work.
Size & Layout
The size of a home has an impact on its value. Most often, the larger the square foot of the home, the more valuable it is. It is a home’s usable space that matters when determining its value, therefore the number of bedrooms and bathrooms are considered to have the biggest impact on the price of a house. Though interesting and unique layouts will always have a niche buyer, traditional layouts carry more value as they are suitable for an array of people and family types. Functional space is appreciated by any homeowner. Excellent storage is sought after, especially in more open-concept homes where things can become cluttered without well designed storage space.
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If you are seeking advice on selling a home in the Ottawa area, or have more questions for us, we are happy to provide you with helpful guidance and support. Email us at info@buyandsellottawa.ca or call us at 613-590-3036.