Main five factors that determine the value of your home.

Many homeowners would like to know what their home is currently worth for a number of different reasons, especially in today’s economic crisis. Whether your trying to refinance, get a loan modification, or sell your property, it is very crucial that you know what the home is worth. Many people are not aware that real estate agents and appraisers will actually use many factors when determining the properties value. Below I am going to list five of the most important factors that are going to determine what your home is worth.

1.Current Market Value- Due to today’s economic crisis the values of homes across America has dropped significantly. No matter how much equity you have built or how many upgrades you have previously done, you cannot change the value of your home on the current market. The majority of homeowners in the United States now have mortgages that are completely upside down and have to pay more on the loan than their home is worth. Many believe that in the next few years we may start to see values raise back to normal. 

2.Location of Home- The location of your property is going to play a major role in finding out what your home is worth. The reason why this is so important is because you cannot change where the property is located, unless it is a mobile home of course. This can change the value of your home instantly if certain events were to happen. For example, you have been living in your home for about 7 years and all of a sudden the city decides to build a dump site near your community. If this were to happen the value of your home and all others around will drop significantly.

3.Condition of Property- The condition of your property is a factor that you as the borrower is responsible for. If you are a very responsible person and take great care of your belongings, you can easily up the value of your home significantly. This will play a slight role in deciding the value, but not nearly as much as the location because some people do not worry about the condition of the property, because it is typically fixable. In fact, many investors look for properties in poor condition because they can fix them up or install upgrades to raise the value. They call this “flipping” in the investor world because they buy a property for cheap and later sell it for much more than what they had paid.

4.Street Appearance- The way that you home looks from the street can be based off many factors including landscaping, paint condition, clean garage, and overall just well maintained. When it comes to real estate the outside of your home will play a huge role in deciding your homes worth. If you are trying to sell your home the outside is going to be the first impression you give, and if its not in good condition many potential buyers will most likely not even take the time to look inside.

5.Upgrades- By installing upgrades to your home you can raise the value of your home dramatically. Upgrades such as new cabinets in kitchen/bathrooms, granite counter tops, new tile, fenced property, add on extra room(s), new deck or patio, and sprinkler systems. All of the things listed can really help you raise the current value of your home. But before doing these upgrades it is wise to first consult with a real estate agent who can help tell you which upgrades will help raise the value the most.