5 Factors That Influence The Market Rate Of Your Home

Purchasing a property can become a tedious and stressful process for one and all. It is a huge challenge to estimate the list price for a home according to the market rates in the area. When you price the home at a high rate, you will scare off the buyers and if you price it at a low rate, you will leave money on the table. Hence, you need to estimate the right market price of the home. You can do this by understanding the factors which influence the cost of the home.

1.     Neighborhood : Once you begin to evaluate the market price of the home you will have to consider the neighborhood or the locality you are in. It is helpful to consider the prices of the properties that are recently sold in the same area. When you want to sell the home, the market valuer will compare the prices so as to prepare a report for the buyer and this will help the buyer determine the amount of loan he may need to apply for. If you have prevailing prices in the neighborhood area on your mind, you can get the right amount for the home you want to sell.

2.     Location : The location of the property will play an important role in estimating the value of your home. A lot of buyers like to consider many different location indicators like the quality of local schools and the proximity to their office or to shopping and parks. This is why there are some neighborhoods which have a high resale value as compared to others.

3.     Size : At the time of estimation of the market value of the home, it is important to consider the size of the home. A large home will obviously impact the valuation in a positive manner and small home will have a lesser price as compared to the large home. The value of the home is considered in price per square foot and larger the size of the home, higher will be its value. You also need to consider the usable space in addition to the square footage of the home.

4.     Condition of the home : If a home is recently constructed, it will enjoy a higher value as compared to a home which might need upkeep as well as repairs. Most buyers are keen on investing in a well maintained home that is in good condition and they will be happy to pay a higher price for the same.

5.     Upgrades : When you make an upgrade to the property, you will boost its value. But it also depends on the type of upgrade you make. Not all renovation is equal. By replacing the entry door, you can get a higher rate on the property but you will not get the same rate if you incur expenses on the backyard.

Keep these five factors in mind whether you are buying a property or selling the same. The market rates vary from time to time and you need to carry out research before you make a decision.

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