1st Southwest Realty, LLC
1st Southwest Realty, LLC
Pat Hune, 1st Southwest Realty, LLCPhone: (480) 703-1976
Email: [email protected]om

What Affects Your Home's Value?

by Pat Hune 11/28/2021

The difference between home price and home value causes confusion for many buyers and sellers. Both price and value are a combination of many variables that are constantly changing. Understanding what can affect home value will help you understand and navigate the market. Here are the key factors that go into determining a home’s value:

Comps

“Comp” is real estate lingo for a home in your area that’s comparable to yours. Real estate professionals research the value and prices of similar homes and use that as a guide for how to price yours on the market.

Location

Prices in specific locations can affect your home’s value. If your area has become more desirable or popular with a particular group of homeowners, you may see an increase in home value. This is because the desirability of a specific location drives up the prices of the properties.

Size & Usable Space

The size of your home is vastly important in determining valuation. The most commonly used method of pricing based on size is with price by square foot or the total price divided by the available square footage. Price per square foot can vary depending on other factors, but the size and usable space of your property is key in determining the value.

Age & Condition

Usually, newer homes get higher values assigned by appraisers. A lot of this has to do with systems and structure of the home. For example, new plumbing, electrical and modern roof techniques fetch a higher price for their reliability and energy efficiency. Homes that need renovations or repairs before they’re livable may have a lower value, as most buyers prefer to spend more on a move-in ready property.

Local & National Economy

Large-scale trends on a local, state or national level also affect your home’s value. The big picture view of the overall economy might determine whether your home value is higher or lower because of factors like employment rate and wage growth. Staying up to date on the economy and housing market at large will help in determining the value of your home.

Home valuation is not an exact calculation. There are many variables that go into a home’s perceived value and even then, the number is just an estimate. However, the more you understand about these key variables, the more you’ll understand the value of your home.

About the Author
Author

Pat Hune

Designated Broker

Pat specializes in new, resale, bank owned and short sale residential and multifamily real estate in the Phoenix area.  A licensed realtor since 2001 Pat started her own brokerage in 2007.  She has a bachelor degree in Business from University of Phoenix, Broker's License, ABR and MSSC in addition to extensive real estate training.  Her professional affiliations include the West and Southeast Valley Association of Realtors, Arizona Association of Realtors and National Association of Realtors. She has traveled extensively including  Australia, China, Ireland, Israel, the Philippines, Malaysia, Canada, Costa Rica, Puerto Rico and Mexico. Prior to entering real estate Pat spent 20+ years in the electronics industry including 17 years at Intel.  Pat is originally from Ohio and moved to Phoenix in 1979. As a 30+ year Phoenix area resident Pat has extensive knowledge of many of the communities in the greater Phoenix area.  In her spare time Pat enjoys hiking, cooking, reading and herding cats.