If you’re planning on selling your house, you will likely want to make sure that you are getting the best value for your property. However, if you’re not familiar with the real estate market, you might get confused about how the value of a property is determined.

So, if you're wondering ‘What factors can increase my house value?’,  you’re in the right place. Read on to find out exactly what factors affect the value of a property and how you can improve your chances of getting a better price for your house.

What Factors Can Increase My House Value

According to Bloomberg, the discrepancy in demand and supply has resulted in a significant increase in the value of properties across the country in the past year or so.  While demand and supply play a huge role in determining the value of any commodity, the market value of a property can be affected by a lot of other factors. These include:

1. Location

You’ve probably heard that the location of a house plays a huge role in determining its value. As a layman, this may confuse you a bit. ‘If the house is nice, why does it matter where it is located?’ However, things are a bit more complex than that. If you find a house in New York City and then come across the exact same house in Princeton, chances are that the price tags would be significantly different.

In reality, it isn’t the value of the house that appreciates over time; it is the value of the location. If the property is in a thriving location with a high quality of life, it will automatically lead to better value. Homes in urban locations with easy access to employers, supermarkets, shopping malls, parks, restaurants, pubs, and other recreational activities, tend to have a higher value as compared to houses in more closed-off areas. Therefore, when investing in a property, it is important to take the location into account.

2. Demand and Supply

Another major factor that affects the housing market is demand and supply. In the past year, a noticeable decrease has been recorded in the supply of houses, which has created a shortage of inventory. As a result, the value of the houses that are available has gone up.

In addition to that, there is also a lack of building supplies and materials as well as labor that is required to build houses and apartments. Most buyers now have to participate in bidding wars if they want to buy a house, which generally leads to the house being sold at a higher value than the original asking price.

3. Value of Comparable Properties

Suppose, you like a dress for $200 at a store. Then you visit another store and find a very similar dress with the same quality, but it is only $50. Which one would you buy? The same theory applies to houses. If most houses in the area are sold at a certain price, you will find it extremely difficult to get a higher price for your home.

However, in today’s real estate market, this can be an asset; especially if you live in a thriving locality. Since the demand is higher than the supply, the values of most properties are increasing at a historic rate. Victoria Lance, a real estate agent, describes this as a domino effect. She explains that she sold a house for $368,000 and then the same floor plan was sold for $385,000. Soon afterward, she had a client list a similar house at $400,000. You can look up the prices of houses in your area if you want to get a rough idea about the price you can get for your house.

4. Usable Space

A large usable space can also increase the value of a house. However, keep in mind that the usable space of your house does not include attics and basements. Instead, usable space is generally defined as living spaces, which include living rooms, bedrooms, kitchens, etc.

That being said, a finished basement or attic can also prove to be an asset when trying to sell a house. Ever since the pandemic has caused more people to permanently switch to working from home, a lot of people are looking for housing with extra spaces to create a dedicated workspace.

5. Upgrades

This is something that you can control if you want to get a better price for your house. Remodeling your house in a strategic manner can significantly boost the value and marketability of your house once it is listed. Recently upgraded houses have better features, which attract more buyers. Additionally, it saves the buyers the hassle of upgrading the house themselves.

Some things you can do to improve the value of your home include lush landscaping, adding a deck, minor kitchen remodeling, paint updates, minor fixtures, and new appliances and systems, such as a new garage door, energy efficient windows, HVAC unit, etc.

6. Age and Condition

It is also important to note that newer homes typically sell at better prices. This is because despite appreciating in value, older homes depreciate physically. Therefore, there is a higher chance that older houses would require more maintenance and renovations.

As a result, more buyers prefer newer homes, as they tend to have more modern plumbing, electrical appliances, and even basic structures. Newer houses may also have longer warranties on various systems and appliances, which further increase their value.

Conclusion

While selling your house, it is important to make smart decisions to save yourself from a potentially expensive mistake. And the only way you can do that is by educating yourself about the real estate market in your locality. Therefore, it is important to research as much as you can to avoid these common house-selling mistakes.

If you’re looking for a good retail agent for consultation, head over to The Wall Team to schedule an appointment today.