Whether you are planning on selling or buying a house, understanding what influences a property’s value will help you determine its fair market value. While there are numerous factors that affect cost, the four below tend to have the most significant impact and are the best place to start your analysis for homes for sale.
What Influences the Value of Homes for Sale?
Location greatly impacts the desirability of a home. For example, neighborhoods with low crime rates and highly rated school districts tend to be pricier. Amenities such as convenient shopping, community parks, and a short commute to the city are all desirable as well.
A home that has been properly maintained holds its value much better. Age plays into this, as new construction homes or ones that have been recently renovated will have a higher value than older structures. A property inspection will tell you the condition of all the major features such as roofing, plumbing, wiring, and the foundation. Buyers may be able to request repairs from the seller during the negotiations if major issues are found.
3. Size & Features
Price per square foot tends to drop as the home gets larger, but the overall value of the home will rise with size. The desirable features may depend on your area. For example, in the city, parking is highly desirable while buyers in suburban areas respond better to more bedrooms and a fenced-in yard.
4. Current Market
The real estate market is constantly fluctuating, and property value will be affected by that market. Supply and demand will determine the value — if more buyers want homes than there are available homes for sale, prices will rise as buyers compete. Low-interest rates and a booming job economy tend to bring a surge of house hunting.
When you are looking into buying or selling a house, the team at EXIT Realty Black Hills have the expertise you need. They are based in Rapid City, SD, and specialize in the real estate markets in western South Dakota, including Hermosa, Hill City, and Keystone. One of their real estate agents will conduct a thorough analysis to determine your home’s value or help you find homes for sale that are priced fairly within your budget. Contact them online or call (605) 716-3948 to get started!