Selling or Refinancing? 4 Factors Affecting Your Home Property Values
There are over 136,570,000 housing units in the United States, and that number continues to grow each year. At any time, there are approximately 1,250,000 homes for sale. The great news if you are looking to sell a home is that number has steadily declined from a high reached in 2010. If you are thinking of selling or refinancing your home, there are many things that can affect its value.
The Neighborhood
The value of your home is largely determined by its location. Home mortgage companies demand a report showing what comparable homes in your neighborhood have sold for lately before they will consider loaning money on it. Its location value is primarily determined by the home’s proximity to good jobs, shopping and entertainment opportunities and the quality of the local public school system.
Home Size
In most markets, the price of the home is determined by the amount of usable square feet in the home. Realtors rarely count unfinished basements, garages or attics in their figure of usable square feet. Therefore, if you want more money for your home, you might think about finishing the basement or adding an attic workspace or bedroom. According to the National Home Builders Association, adding an extra bedroom can increase the value of your home by 20 percent.
Move-in Ready
Buyers want a home they can enjoy without having to do a lot of work on it, and they will pay for upgrades that the seller has made to the home. All upgrades are not equal, however, so if you have a limited budget think about upgrading the kitchen first by installing matching stainless steel appliances and quartz countertops. You can generally expect to gain $3 for every $1 you spend in kitchen upgrades.
The Market
The housing market varies tremendously across the United States. In markets where there are more homes for sale than people looking for homes, then prices usually go down. The opposite is also true. In markets where there are more people looking for homes than homes available, then the price usually goes up. If you are wondering if now is a good time to buy property or sell a home, then look at economic projections in your community because housing prices will usually follow them.
Considering these four factors will help you determine if now is a good time to buy or refinance a home. It will also let you know if now is the right time to sell. In the end, however, it often comes down to an emotional gut decision.