Fac­tors that im­pact a home’s value

The Progress-Index - At Home - - NEWS - StatePoint

It may seem like the size of your home is the be-all and end-all of your home’s value. But there are many other fac­tors that come into play when de­ter­min­ing the list­ing price of a par­tic­u­lar home.

A new re­port of­fers some in­sights. The Cold­well Banker Home List­ing Re­port, the most ex­ten­sive home price com­par­i­son tool cur­rently avail­able in the coun­try, ranks the av­er­age list­ing price of four-bed­room, twobath­room homes in nearly 2,000 mar­kets across the coun­try. An­a­lyz­ing more than 51,000 sim­i­lar-sized list­ings, it ad­dresses how much a home in one mar­ket would cost if the same home were lo­cated some­where else in the United States.

For ex­am­ple, the re­port re­veals that for the price of the av­er­age home in Los Al­tos, Cal­i­for­nia, you could pur­chase 30 sim­i­lar­sized homes in Cleve­land, Ohio, nine homes in Char­lotte, North Carolina, eight homes in Chicago, Illi­nois, five homes in Mi­ami, Florida or two homes in Seat­tle, Wash­ing­ton.

But why are there such dis­crep­an­cies?

“It’s amaz­ing how much lo­ca­tion im­pacts a home’s value,” says Cold­well Banker Real Es­tate con­sumer spe­cial­ist Jessica Ed­wards. “Typ­i­cally, ur­ban mar­kets are more ex­pen­sive, while sub­ur­ban and ru­ral ar­eas tend to be more af­ford­able. How­ever, many fac­tors con­trib­ute to the av­er­age price of a home, such as com­mute time or prox­im­ity to the water­front. The Home List­ing Re­port is a help­ful ref­er­ence, so you can gauge how your area com­pares to other parts of the coun­try.”

Lo­cal in­dus­try plays a role as well. In the case of Los Al­tos, which is ranked as the most ex­pen­sive mar­ket in Amer­ica, the con­tin­ued suc­cess of many tech com­pa­nies con­trib­utes to the boom.

This in­for­ma­tion can be use­ful, whether you’re plan­ning to put your prop­erty on the mar­ket or you’re look­ing to re­lo­cate. For ex­am­ple, if you are scop­ing out a neigh­bor­hood where home prices are on the verge of in­creas­ing, area fea­tures to look out for in­clude cul­tural in­sti­tu­tions — such as art gal­leries and per­for­mance spa­ces — as well as such fac­tors as unique ar­chi­tec­ture and prox­im­ity to mass tran­sit and other trendy ar­eas.

Ed­wards also rec­om­mends do­ing some quan­ti­ta­tive re­search, in­clud­ing talk­ing to your Re­al­tor about how fast prop­er­ties are sell­ing in your area and whether business own­ers are in­vest­ing in the neigh­bor­hood.

“Buy­ing or sell­ing a home is a huge emo­tional and fi­nan­cial decision,” says Ed­wards. “By do­ing your home­work be­fore­hand, you will be able to take some of the un­cer­tainty out of the process.”

Re­mem­ber, while this in­for­ma­tion is very use­ful for home­own­ers and prospec­tive home buy­ers, it’s by no means a re­place­ment for a pro­fes­sional real es­tate agent who un­der­stands lo­cal con­di­tions.

For more de­tails about the re­port, or to see how your area stacks up, visit hlr.cold­wellbanker.com.

For many peo­ple, a home is their big­gest in­vest­ment and largest as­set. Be savvy and stay in­formed about the ins and outs of its value.

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