How Much Is My House Worth? Factors That Influence Property Value

The value of your house depends on several factors, meaning there is no definite formula for determining value. However, some variables have a more considerable impact on the value of a house. The housing market will play a big part, as will the local real estate market. Other factors are the property's size, location, age, and condition. 

Consider all these factors to get the proper value of a house. Usually, sellers will consolidate all these factors to create a fair listing. For their part, buyers will consider the same to make competitive and informed bids. 

 

Factors That Influence Property Value

 

Neighborhood Comparisons

A reliable indicator of the value of your home is the prices of similar houses in your neighborhood. Homes that have been recently sold are called comps. Real estate experts can access comparative market analyses, home appraisals, or open-door evaluations. However, they will rely on comps to estimate the value of a house on the market. 

To find the best comps to use for valuation, follow these tips:

 

• Recently sold:

Use only recently sold homes to help you estimate value.
 

•    The features:

Use comps that are closest to your house in terms of the type of home, number of bedrooms and bathrooms, year built, and size.
 

•   Distance:

Ensure you use comps in the same subdivision and, if possible, the same neighborhood. A house in a different subdivision may have access to different amenities and HOA rules changing the value.
 

•  Location:

If your house is close to certain advantages like waterfront, golf course, or busy street, ensure you get similarly located comps.
 

Location

The location of your house may be ideal for your unique needs. For appraisers, the factors to consider are proximity to schools, entertainment, shopping facilities, and recreational centers. These can make a neighborhood have steep prices and another similar neighborhood a few miles away less pricey. Sometimes, the location can be more critical to the price than other features.

 

Square Footage and Usable Space

The bigger a home is, the higher the price goes. Commonly, the value of a house is determined by its square footage. The price per square foot will depend on the buyers and the factors they will consider. In some places, they will pay higher than others. Also, usable space is considered when calculating the value of a home. The final valuation may not consider unfinished basements, attics, and garages.

 

Condition and Age

Newer houses usually appraise at higher numbers due to the condition of critical factors. Plumbing, electrical wiring, appliances, and the roof will last longer. Most buyers will pay more for a move-in-ready house than an older house. For this reason, most of them will need an inspection contingency.

 

The Local Market

The price of your home will depend on the number of buyers and homes on sale. You may have the best upgrades and a prime location, but the price of your house may change due to the state of the local market. The cost will depend on whether it is a seller's or buyer's market.

For more on how much your house is worth and what factors influence property value, visit Hunsinger & Co. Estates at our office in La Jolla, California. Call (858) 732-4663​​​​​​​​​​​​​​ or (858) 414-4295 to book an appointment today.