Tuesday, March 29, 2022 / by Joe Johnson
What’s Increasing Your Home’s Market Value?
WHAT YOU'LL LEARN
Physical changes that improve your home’s value
How local economics alter the value
One word: Location
The moment closing wraps up for your loan, you begin a new commitment. No, not your mortgage, although that is another responsibility you’ve recently agreed to undertake. We’re talking about your new home’s appreciation.
Purchase Price + Appreciation = More Money You’ll Make in Resale
Your home’s value can increase over time, but it all depends on internal, and some external, circumstances. In other words, significant appreciation can result from your actions, but there are a few factors you can’t control in the valuation process. Your home’s age and condition are important. You need to maintain, and better, your home’s health, but there are still some things that need to fall in your favor for your market value to increase. So, if your home is an investment, what can you do and what needs to happen to see a big-time payoff once you finally decide to sell?
Perhaps the most obvious answer, but your home’s appearance and features greatly correspond to increasing the market value. According to the national association of REALTORS®, the two most important rooms to homebuyers are the kitchen and the master bathroom. With that knowledge in mind, it might be in your best interest to spruce up the rooms to make them more modern and broadly attractive.
Stainless steel appliances and quartz countertops are all the rage these days for kitchens that see a lot of action. You can enjoy their easy-to-clean surfaces in the meantime, but rest assured you’re doing yourself a favor for when your house hits the market by switching to either of those materials. As for the bathroom, heated floors, neutral colors that won’t be too difficult to match, and multi-functional handheld shower heads are luxuries buyers want.
Painting a room to look brand new is another way to better your market value. Again, neutral colors attract the most wide-ranging audience. If you have kids or pets who might’ve left a few scuff marks on the walls over the years, remember you can do something about that before you put the “for sale” sign up.
If your home is eco-friendly, that’s a plus for buyers. If your home is saving money at the same time, that’s a double plus. Some great ways to keep your home energy efficient, and reduce your bills in the process, include:
Seal windows and doors so air can’t escape or sneak in.
Purchase a programmable thermostat.
Switch from incandescent light bulbs to leds.
Install skylights in your kitchen or bathroom.
Transition to a high efficiency water heater.
With a programmable thermostat, you can set your home to cooler or warmer temperatures as needed. That means you won’t waste any energy when you’re not at home.
Curb appeal refers to the relative quality and visual appeal of a home’s outside to someone viewing from the sidewalk. To draw the attention of anyone passing by your home, you should repair any scarring to your roof, have a professional inspect for termite damage, and keep your home well-landscaped. In the backyard, wooden decks are a feature many people are looking for, so if you have the space and money, you might want to consider the sure-fired bet of improving your market value.
Don’t forget about “screen appeal,” too! We live in a society where most interested homebuyers start their shopping online, so remember to give special attention to your home’s online presence as well.
Real Estate Economics
As mentioned, there are a few outside forces that you can’t control when evaluating your home’s appreciation. For example, the current state of supply and demand on the market. Greater demand in your area means your home will be worth more. An active market with ready buyers helps your appreciation.
When job creation is trending upwards and employment is rising or stable, your home’s value surges because a larger population of people can pay more for homes. Lower mortgage rates also draw the attention of homebuyers, which is a good sign for your home’s worth. But remember, each of these examples occur naturally, so keep your finger on the housing market’s pulse to know when you’ll potentially profit the most from selling.
Location is another factor that, if you’ve already purchased a home, is out of your control. But for those buyers who are already thinking ahead to the time when they will sell the home, the location of your property greatly impacts its value. If your home is in a good school district with booming commercial businesses nearby, your home has already grown in value, whether you knew it or not. Neighboring entertainment venues and dog-friendly trails and parks also won’t hurt your appreciation.
Whether you’re ready to sell, considering selling, or you just purchased your new place, remember these examples of how and why your home increases in market value. Not everything is out of your control, so make sure you see the best financial return on your investment when it’s finally time to sell.
Want to find out what your home is worth? The Reiner Realty Team can help. Give us a call today at 540-494-9284 or click HERE for more info.