What Are The Factors That Affect Resale Value?

resale value

Here's why your neighbor’s house could be worth a lot more than yours. In my experience if you are looking to score the face value for your home there are some renovations to increase the value of your home for sale with the reasons why they help impact the value. 

Location: Proximity to a busy highway, proximity to a large vacant lot, home placement almost always guarantees a stagnation of value. This is why two identical homes in the same neighborhood can have wildly different listing numbers. If you are looking to witness a pleasant jump in perceived market value, especially if the specs of your home appeal to younger professionals then consider the walkability.

Age: Character-filled old properties are always in demand as are new-construction homes. But a house that is 30 or 40 years old holds a lot less sway over discerning shoppers, especially if its layout is odd or dated.

Renovations: Every home reflects who you are and the target audience you focus to sell to. Although always a major renovation is the best way to increase your net return. The top value is always achievable for a fully renovated and then price accordingly. The most simple solution is fresh coat of paint and flowers to instantly spruce up the place. 

History: Was your home once flooded during a storm and suffered mold as a result? Was your street or neighborhood once associated with high crime rates, even if that information is now outdated? Did a fire ever occur on or near the property? Did a crime ever occur? It is near impossible to scrub the public record of your home’s history; if your house has a storied history, then savvy potential buyers will know about it — and they may not be eager to inherit your home as open as you. 

Size: One of the first stats potential buyers look for on a real estate site is the square footage. Most buyers are looking to upgrade, so your 500-square-footer might have limited appeal.  Many buyers now are more pragmatic about how much space they really need to be comfortable.The second set of stats scrutinized by buyers? Bed and bath counts. There’s no buyer out there who doesn’t dream of having a separate guest bedroom or getting a whole bathroom to themselves. Even the most coveted address won’t be helped by having only one bathroom or a low bedroom tally.

Out of step with neighboring houses: Is yours a single-family in a sea of townhomes? Is your condo in a modern building surrounded by historic structures? If your place lacks area comps, a bank is going to have a hard time properly assessing its resale possibilities and is likely going to underestimate your home’s worth come appraisal time. And that unfair assessment could give your buyer a reason to try to negotiate down the sale price.

What factor do you think affects home values the most? Tell us in the comments!

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Gurcharan Garry Bhaura

Gurcharan Garry Bhaura

Broker of Record
CENTURY 21 President Realty Inc., Brokerage*
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