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Important Factors That Determine The Market Value Of A Home

Posted By: Sarah Schwartz

Important Factors That Determine The Market Value Of A Home 

Buying or selling a home is a major financial move. If you are in the market for St Johns Homes for sale, it is essential to keep up with how to determine the value of a home correctly. This is crucial to setting the right buying or selling price. 

Coming up with the right market value requires some considerations and analysis of certain variables. For example, age, location, condition, size, and the state of the market all affect how you value St Johns, Silverleaf, or Shearwater homes for sale. You can either do this yourself or work with a reputable realtor in St Johns. Whether you’re looking for a realtor in Silverleaf St Johns, Realtor in Rivertown St Johns or any homes for sale in St Johns, consider working with the Sarah Schwartz Group, one of the best teams and top 1% real estate agents in St Johns.

If you are taking the DIY route, below we have put together a list of these variables and how they affect a property’s market value.  

Without wasting time, let’s get to it! 

1. Local market and location of your home.

The home’s location is one of the most critical variables that determine its value. Overall, specific housing markets are more expensive than others. For example, homes in St Johns County will be more expensive than homes in Jacksonville or Duval County partly because of the higher rated school system.

Similarly, homes in the same market may also have different values. The value will be higher if the house is strategically positioned in the heart of the neighborhood—close to schools, restaurants, shops, or public transportation facilities. We can say the same about homes in sought-after tourist destinations or a body of water.  

The homes view or neighborhood congestion are other determinant factors that relate to location and which may affect the value of a home. 

2. Overall size and usable space.  

It is common to see the market values or prices of homes quoted in terms of the overall size, usually as price per square foot. For example, a 1,000-square foot home will cost $250,000 if the price per square foot is $250. This is a primary method that is used as the starting point for putting together comps.

The usable space or layout is another size-related factor that determines the market value of a home. Homes with larger bathrooms, bedrooms, and kitchens can have considerably higher values. It is important to note that attics, basements, and garages are not added to the usable space when valuing St Johns homes for sale. 

3. Condition and age of the home. 

According to the rule of thumb, a newer home will command a higher market value than old properties. Since Silverleaf homes for sale are within a new construction neighborhood and fitted with newer electrical and plumbing fixtures, they can be better valued by a prospective buyer. For instance, roofing with a 10-year warranty will save the potential buyer any possible expenses for the next ten years. 

In the same vein, a move-in-ready property will be more valuable than old homes that require repairs. The value drops with the extent of repairs and upgrades to be done. 

4. The state of the housing market. 

As simple as it may sound, the basic rule of supply and demand affects the value of your Silverleaf homes for sale. High demand but fixed supply drives up the price because more people are attempting to buy a limited number of properties. Supply may improve when existing properties are divided into smaller units or new structures are developed. Conversely, when supply is more than demand, the prices drop, and so does the market value. 

How do you estimate the market value of a home?

There are a few ways to obtain a general idea of what a home is worth. For example, some sellers and buyers use online home value estimators. These tools compare the recent sales and listing prices to predict the market value of a property. However, you can get a more accurate estimate using an experienced realtor in St Johns or Jacksonville. 

Realtors in the area understand the local market better and can guide homeowners and homebuyers to determine the correct value for their properties. 

Finally…

Determining the right market value for your Rivertown homes for sale is the first step in getting the best out of it. You should consider the factors listed in this article and considering hiring the best realtors in St Johns when pricing a home to set the right price and attract the right buyers.