What factors affect the value of your home?

Upgrades and amenities

Improving kitchens, bathrooms, and adding features like high-end appliances, energy-efficient systems, and luxury finishes can improve your home's appeal and potentially increase its value.

Comparable sales

Comparing local house prices is key when figuring out your home's value. Real estate agents and appraisers look at recent sales of similar properties in the local area to establish a market baseline. This helps determine an accurate valuation that reflects current market conditions.

Location: the cornerstone of value

Location is one of the most important factors that determines your home's value. A home in a busy, popular neighbourhood with excellent schools, easy access to conveniences, and closeness to public transportation will fetch a greater price than a home in a less desirable area.

Male constructor drawing draft on paper roll

Home size and layout: square footage matters

The size and layout of your home play a crucial role in its value. A larger home with well-designed and functional spaces will be more appealing to buyers and command a higher price. Additionally, having an extra bedroom or a spacious living area can add to your property's appeal.

Age and condition: ageing gracefully

A newer home with modern features and a fresh look tends to be more appealing to buyers and commands a higher price. However, an older home with a charming historical character and well-maintained condition can also hold value. Renovating an older home can enhance its value, but it's essential to choose upgrades that complement the overall character of the property.

Market trends and economic factors: a wider perspective

While local factors play a significant role, broader market trends and economic conditions also influence property values. A strong economy and low interest rates typically lead to a higher demand for housing, driving up prices. Also, economic downturns and rising interest rates can suppress market activity and have a negative impact on property values.

Understanding the factors that impact your home's value empowers you to make informed decisions that maximise your investment. By evaluating location, size, condition, upgrades, market trends, and economic factors, you can gain a clearer understanding of your property's potential and make strategic choices that align with your goals.

Improving the value of your home

If you want to improve the value of your home but aren't sure how exactly to go about it, check out the following article for tips on how to do so!

How to add value to your house

Important information

Your home may be repossessed if you do not keep up repayments on your mortgage.

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