The main factors that affect a home’s resale value fall into two main categories: location and property condition. While you can’t change the location of your home, strategically improving the condition of your home, such as modernizing the kitchen or maintaining the roof, is your best bet to maximize your sales price.
Understanding how both of these categories affect a home is essential for homeowners planning to sell. When selling your home in Denver or Stowe, this Redfin real estate article will help you understand what’s important when reselling your home.
location is everything
The value of a home is fundamentally affected by its surrounding environment. These factors are external, meaning they cannot be controlled, but they are important to the final evaluation.
Neighborhood desirability: This includes the reputation of the local school district, low crime rates, and the overall attractiveness of the area. In many cases, buyers are buying a lifestyle as much as a home. Proximity to amenities: How close is your home to career centers, public transportation, parks, and retail stores?Easy access to these conveniences adds value. Comparable Sales: Appraisers will rely heavily on the sales prices of similar homes in your immediate area (known as comparables or “comps”). If there have been a large number of recent high-value sales, the lower limit for real estate valuation will be set higher.
Power of property condition
A property’s current condition and its features have the most direct impact on resale value. Functionality is the key to maximizing return on investment.
Square footage and layout: The number of bedrooms and bathrooms, as well as the open and functional layout, will appeal to a wide range of buyers. For example, a four-bedroom home is often more competitive than a three-bedroom home with the same square footage. Kitchen and Bath Updates: Updated kitchens and bathrooms always provide the best return on investment. Buyers will appreciate the latest appliances, contemporary finishes, and efficient space design. Curb appeal and maintenance: A well-maintained exterior tells buyers that the rest of your home is well-maintained, too. Age and condition of major systems: Buyers pay close attention to the roof, HVAC, plumbing, and electrical systems. Providing records of recent maintenance or replacements on these big-ticket items provides great peace of mind and increases value.
Important bonus features
Beyond the core elements, certain features directly improve daily life and can significantly increase buyer enthusiasm and justify the premium price.
Garage and Private Parking: Covered parking, especially a garage, is a great feature of a home. They provide protection from the elements, security, and storage space, making them highly desirable in all markets. Natural light and openness: Homes with plenty of natural light feel larger, more comfortable, and more modern. Features such as large windows, open-concept design, and south-facing exposure create the desired airy feel. Functional space and storage: Buyers prioritize functional square footage. This includes dedicated storage solutions, flexible living spaces (such as a home office or gym area), and a clean and usable basement or attic.
5 actions to maximize the appeal of your home
Get a pre-inspection: Control costs and avoid last-minute buyer negotiations by identifying and fixing any major system issues (such as HVAC or plumbing) before listing. Modernize five major fixtures: Update light fixtures, cabinet hardware, faucets, electrical outlets, and door handles throughout the home. These small changes give you a modern feel at a low cost. Enhance your main living areas: Focus your most thorough cleaning and organization efforts on the living room, master bedroom, and kitchen. These are the spaces where buyers spend the most time during a trade show. Highlight digital features: Highlight the availability of high-speed internet and smart home features, such as smart thermostats and security systems, which are increasingly important to modern buyers. Professional landscaping: Cut out trees and bushes, apply a new layer of mulch, and make sure your lawn is perfectly maintained. Understated appeal is the first impression that directly impacts the rest of your viewing experience.
FAQ
Which home renovations will give you the best return on investment?
Minor kitchen renovations, such as updating cabinet hardware and countertops, often yield better returns than a costly complete overhaul. Refinishing your hardwood floors or adding a new coat of paint is also a very reliable investment.
Does the value of a house decrease as it ages?
Not always. Older homes may require more maintenance, but well-maintained historic homes in desirable areas can be expensive. What’s important is not the model year itself, but the condition and clear maintenance history.
How much does curb appeal actually affect sales price?
Subdued appeal is often the buyer’s first impression. A clean and attractive exterior can make a difference as it sets positive and valued expectations for the interior view.
If you are represented by an agent, this is not a solicitation of your business. This article is for informational purposes only and is not intended to substitute for professional advice from your health care provider, licensed attorney, financial advisor, or tax professional. Consumers should independently verify whether the agencies and services mentioned meet their needs. Learn more about us
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