What Makes Property Value Increase?
As Sapling explains, property value is the estimated value of a piece of property at a specific moment in time. While home appraisals are often conducted to determine a property value around the time of a home sale because it gives a snapshot of the home’s fair market value, a property value and the actual sale price can be very different. In fact, the price could be either substantially higher or lower. However, there’s no doubt that a home’s property value influences both your property taxes and the amount that you’re likely to receive if you decide to sell your home. That makes taking the time to learn what makes property values increase a wise move.
Supply and Demand
The law of supply and demand impacts many markets, and the real estate market is no exception. As Mashvisor points out, when there are lots of people eager to buy homes in an area, the number of available homes doesn’t magically increase to match the number of buyers. Instead, the buyers compete for the available supply, driving up the prices and increasing the property value of homes throughout the area.
Going green decreases your energy bills and increases your property values. As NerdWallet indicates, you have plenty of options. You can outfit your home with solar panels, double-paned windows, efficient appliances, LED lighting, and enhanced attic insulation. If you’re wondering how you can fund these improvements, check out energy-efficient mortgages. There are several different programs to choose from. Once the improvements have been made, you’ll enjoy the immediate benefits, including lower energy bills. Plus, you’ll have the advantage of higher property values and the knowledge that your home will be more appealing to environmentally conscious buyers if you choose to sell.
Desirable Development at the Location
Location is always an important factor in real estate. Homes in desirable places have higher property values than homes in areas that are found in places that fewer people want to call home. Therefore, it’s only logical that developments that make your location more desirable can raise your property values. As Housing.com reports, infrastructure developments like a new road or transit hub that will make your property more convenient can be a huge plus for your property value. In a similar fashion, the arrival of a community green space or some other public amenity near your home or neighborhood can make your home both more desirable and more valuable.
Home Size and Useable Space
When it comes to useable space, bigger is generally better. As Opendoor points out, bedrooms and bathrooms are normally the priority, and unfinished basements don’t count. To protect your home’s value, don’t sacrifice any bedrooms or bathrooms. Take care to preserve their numbers and present these rooms at their best. Are you interested in adding square footage? Finishing a basement can be a good way to create more living space within the same footprint. Adding on is also an option if you have the room and the funds.
Visual Appeal and Updates
An attractive property that is maintained well is going to fare better during an appraisal, according to NerdWallet. Strong curb appeal and neat landscaping help to make a good first impression. Once that’s in hand, consider the kitchen and bathrooms. If any of these rooms are badly dated, a simple update can go a long way toward raising the property value of the home. In other rooms, a coat of paint can help freshen the space, brightening the room and making it seem clean and new.