What Determines Your Property's Value?
When we are asked by homeowners to give our estimate of market value, we use a number of criteria to arrive at that figure. The factors that enter into our estimate may surprise you--including market conditions, economic shifts and the condition of your home itself. Herewith, a list.
Supply & Demand. What we all learned in Economics 101 plays an integral role in your home’s value. Property values rise when a low supply of homes meets strong buyer demand, as we see today. If an area normally has 15 to 20 properties for sale and now has only 5, sellers will get top dollar.
Comparable Sales. Both real estate brokers and appraisers value homes based on the recent sales price of comparable homes. But brokers also consider similar homes that are actively listed, where appraisers focus on homes that have sold & closed. If similar homes are selling (or listed) for a higher price this month than they were 3 months ago, the price point is moving up.
Jobs Market. Strong job creation often leads to an increase in demand as buyers gain financial strength and stability. Property values rise in regions experiencing job growth, and it’s a metric we watch carefully.
Population Growth. Going hand-in-hand with job growth, population tends to increase as added workers bring their families or form new families in the area. Those individuals & families need households, which leads to an increase in demand for housing.
Cost to Borrow. Most homebuyers need a loan to complete their purchases. When mortgage rates are low, more buyers step into the market because they can save thousands over the years by securing affordable financing.
Location. The location of a property is very important, hence the old saw, “location, location, location.” Neighborhood schools, access to commercial conveniences, noise levels, sense of privacy, views & setting, adherence to zoning regulations and proximity to nature, trails & parks and more all play a part in what homebuyers are willing to spend on a home.
Your Home. The square footage and number of bedrooms & baths certainly determine who will fit and live comfortably in your home. But age and condition are also important, especially when a buyer compares your property to others on the market. If your heating system and appliances are old, buyers tend to discount value because they anticipate replacing those things soon. If your paint is chipping, roofing shows wear, floor coverings are worn, paint is outdated or there’s evidence that you have not maintained your home, buyers will take that into consideration as well.
Curb Appeal. You never get a chance to make a good first impression. If the landscaping around your home is overgrown & neglected, buyers will notice it and approach the interior of your home with less enthusiasm. In our foothills area, it’s not as necessary to create fancy landscaping as it is to groom the natural setting you already enjoy.
Price per Square Foot? This may surprise you. For homes sold since Jan 1, 2020, the range of price/square foot in Evergreen was $85 on the low end and $795 on the high end (with one home on a very large acreage at $1,583/sq ft). Price per square foot is one of the most popularly considered indicators of value in many markets across the country, but in our foothill areas it’s one of the least reliable metrics by itself.
All these factors go into a professional broker’s opinion of value. It’s important to seek out an experienced, seasoned agent who is familiar with all the aspects of foothills living to give you an accurate market analysis. All the brokers on Tupper’s Team have decades of experience, in all neighborhoods and all price ranges, to provide you with the most reliable valuation estimate. Visit www.TuppersTeam.com to see more about the brokers on our team.
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