Can you estimate the value of a property by looking at its infrastructure? Absolutely not. Before buying or selling a house, some crucial factors need to be understood clearly.
Nowadays, the prices of houses are showing an increasing trend, with a 14.2% high in the current housing market in Florida. Although there have been fewer homes sold in the last year, the average selling value is higher.
Therefore, you must know what affects housing prices and how you can easily buy and sell a home. Continue reading for an ultimate guide that discusses the 5 factors that influence the sale price of a home.
How to Determine the Value of a Home or Property?
Before we go deep into what factors affect housing prices, you should know how a home’s value is determined. All thanks to digital technology facilities, you can now quickly check a property’s value from home. Here are some ways you can choose the value of a house:
- One way to determine the value of a home is to get in touch with a real estate agent to get a Comparative Market Analysis (CMA). 3-Step Home Buyer can help you determine your home’s value per the marketing trends.
- Another convenient way is to check the online property portals and look at all the home information available.
This way, you can get an accurate estimate of every property you want to buy or sell. Checking market predictions is also a great way to keep up with the latest housing trends. For instance, according to Florida market estate predictions, housing prices would not slow down but increase to a greater extent in the upcoming days.
Factors Affecting the Value of a Home
The value of a home significantly depends on its surrounding, environmental situations, and other crucial factors. When selling or buying a property, having a keen check on these factors is vital to avoid future disturbances with property managers.
Ultimately, these are the main forces that can make or break a home sale. Let’s look at 5 factors that influence a home’s sale price.
1- Value of Comps
It’s beyond doubt that neighborhoods have a significant influence on the resale price of a property. The comparable homes, also known as comps, act as a determining factor when making a final sale price of a property.
For instance, if a neighbor’s home is sold at an average price, you can get an idea that the home you’re buying should fall in the similar average price category. Similarly, you can analyze and evaluate the similarities between your home and comps and estimate a final price accordingly.
2- Day-to-Day Facilities
Buying a home without facilities for entertainment, schools, and crucial areas is not worth living. Therefore, make sure to choose a house with everything you need in your daily activities that suits your life requirements. Enlisted below are some essential things you should always look for and that affect the home’s value:
- The level of education and local schools in that area
- Business or employment opportunities
- Ease of public transportation and parking
- Availability of entertainment sites, grocery stores
- The crime rate and other associated risk factors
3- Condition and Structure of Property
Florida is a good market for houses, as you’ll find new homes from most sellers and property dealers. This is because the more unique the property will be, the more will be its market price. Thus, you should always double-check if the house is old or newly built or the overall condition of the area.
Besides this, you should also consider the critical parts of the home as they greatly influence supply and demand in a housing market. These vital parts mainly include the roof, plumbing, floor plan, kitchen, electrical appliances, etc. Moreover, you should also look at a property’s usable and livable space when estimating a final price.
4- The Size of Home
When making a final deal, home size eventually affects your resale price and overall housing cost. Depending on your family size and lifestyle, you should choose the average size of a property.
Suppose a house is sold for $100,000, with a size of 1,000 square feet; its average per square foot price would also vary accordingly. Hence, you should generally look at the following two factors when determining a home’s value:
- Usable Space
It is the total space usable in an area or property, referred to as Usable Square Footage (USF). Commonly, exterior and outer spaces make up a major portion of functional spaces. In determining the value of a home, understanding the cost of these spaces is significantly important to make an accurate deal.
- Livable Space
On the other hand, livable space is one that mainly includes apartments, living rooms, bedrooms, and bathrooms as well. These are generally determined by measuring the length and width of each room, multiplying them, and dividing them by the total space in square feet.
5- Housing Market
Last but not least, that area’s overall housing market also dramatically impacts the resale price of a house. As per the house price forecast in Florida, the market will grow higher in terms of increased prices and fewer houses sold in the previous years. Thus, you should always look at the local market conditions before signing a contract.
Sell Fast, Buy Fast and Enjoy Great Quotes with 3-Step Home Buyer
Whether you want to sell or buy a home, getting the expected deal is a painstaking process. You want a perfect, tidy, and appealing home for your family, and in case you want to sell it and move out from Florida, you want a great price!
So, how will you achieve all these things when the real estate market in Florida constantly changes?
Here comes 3 Step Home Buyer with years of experience in the real estate business. We know which factors influence sale price of a home and how the current housing market in Florida is changing.
Given all the knowledge and expertise, our dedicated team will take the burden off your shoulders and give you the final deal within 7 days!
So, don’t stay calm and step ahead to sell your home fast!