Factors Most Influential on Home Values
Buyers have become wiser, researching important facts not only about the houses they’re interested in but also about the communities where the homes are located. Desare Kohn-Laski, broker-owner of Skye Louis Realty in Coconut Creek, Fla., says it’s essential that real estate professionals show their value by keenly understanding the factors influencing home values in order to help and influence those research-savvy clients.
Study these four factors in your market:
- Location. This is nothing new; everyone knows location is extremely influential on home values. But it might be underutilized in the marketing listings. A great location is something sellers can capitalize on today more than ever, whether it’s a city, neighborhood, proximity to amenities, or the view, Kohn-Laski says.
- Community statistics. School district performance, crime rates, walkability, and the number of establishments such as convenience stores and restaurants are factors that can influence home values, Kohn-Laski says, also influencing home buyers.
- Home updates. Improvements and renovations can have a dramatic effect on a home’s value. Take a look at comparable properties in the area to understand which updates will give your clients the most bang for their buck. Changes in flooring, wall paints, doors, and even added rooms will add to the home value and appeal to buyers.
- The neighborhood. “Home values are volatile,” Kohn-Laski says. “Always do your dose of monitoring neighboring home prices. This way you can properly put a tag price on your own not only for profitable margins but also to be competitive with other homes for sale.”