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5 FactorsThat Impact Your Home’s Value

Find out how the estimated value of your home is determined with our simple 5-step summary.

Location. Location. Location.

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There’s a saying in the real estate investment industry that goes something along the lines of “it’s better to buy the smallest house on the most expensive street, than the biggest house in a less prominent neighborhood,” and that’s because location is key in home valuation. The neighborhood your house is in makes a big difference to what it’s worth. Also important are lesser considered aspects of location, such as proximity to schools, restaurants, grocery stores, medical facilities, employment opportunities, and recreational activities.

Size Matters

How Much is Your Home Worth

When it comes to home value, size does matter. The number of bedrooms, bathrooms, and total square footage of your house, and yard size influences the estimated value of your home. It’s important to also consider space that is usable, versus space that isn’t usable, as that’s an often misunderstood factor in home value estimates.

Age Has Impact

Home Value Age

Unfortunately when it comes to real estate, older construction typically decreases home value. Older homes lend clues to the age of plumbing, appliances, electrical wiring, roofing, and so on, which can be very costly items to repair or replace. For this reason, homes with original, older construction tend to be less valuable than brand new homes.

Comparisons Have Influence

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Home value estimates don’t only consider your house, they also look at comparisons in your neighborhood. The amount that other houses nearby have sold for, and are selling for, and the number of days they were or have been on the market for, also impacts what your home is worth.

Local Market Governs

Current Home Value Estimator

Supply and demand has a big impact on the real estate industry. The number of other houses for sale in your area compared to the number of active buyers interested in your neighborhood, also affects the estimated value of your home. When demand is high and inventory is low, the higher your home value estimate is likely to be.

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