Education and news for smart DIY landlords!
Did you know that the average sales price of houses in the US more than doubled in just over 20 years?
House prices today are at an all-time high, but it doesn’t mean that you can just put up a price for a house you want to sell. The buyers will ultimately determine if they’re willing to pay for it. So to help you decide on placing the right price, we’ve outlined some factors that can significantly affect the value of your home.
The size of a house is one of the most significant determinants of pricing. The bigger the house, the higher the market value.
Aside from the area, buyers are also looking for the number of rooms or livable spaces inside your house. For example, is there a garage or basement in your house? How many bedrooms and bathrooms are there? In most cases, houses with more bedrooms and bathrooms are more expensive.
Even if your house is big, you can’t sell it quickly if it’s too far from civilization.
The price of a house is also dependent on its location. When deciding whether the price you offer is worth it, buyers usually look at these indicators:
Demographics are information on the population in a specific area. This describes the age, race, gender, growth, and income of a population in that area. The demographic changes in a particular location can affect the trend of real estate prices, and it can also predict the types of houses that are in demand.
Ultimately, a nation’s economy significantly impacts the housing market as a whole. Economic indicators like employment rates, manufacturing activity, and pricing of goods typically measure the state of an economy.
The economy is also measured by the Gross Domestic Product (GDP), which is the total market value of all finished goods and services in a specific period. A falling GDP means the economy is shrinking, leading to suffering in the real estate market. But when the economy thrives, and the employment rates are high, house prices will increase because people are financially more secure in their jobs.
It’s important to be aware of the factors that can affect the value of your home, especially when you’re planning to sell it in the future. If you want to add value to your home, try upgrading its interior and exterior. For example, fixing your lawn or adding a fresh coat of paint. Your expenses for the upgrade will be worth it.
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