Factors that impact a home's value
It may seem like the size of your home is the be-all and end-all of your homes value. But there are many other factors that come into play when determining the listing price of a particular home.
A new report offers some insights. The Coldwell Banker Home Listing Report, the most extensive home price comparison tool currently available in the country, ranks the average listing price of four-bedroom, two-bathroom homes in nearly 2,000 markets across the country. Analyzing more than 51,000 listings of a similar size, it addresses how much a home in one market would cost if the same home were located somewhere else in the United States.
For example, the report reveals that for the price of the average home in Los Altos, Calif., you could purchase 30 homes of a similar size in Cleveland, Ohio, nine homes in Charlotte, N.C., eight homes in Chicago, Ill., five homes in Miami, Fla. or two homes in Seattle, Wash.
But why are there such discrepancies?
Its amazing how much location impacts a homes value, said Coldwell Banker Real Estate consumer specialist Jessica Edwards. Typically, urban markets are more expensive, while suburban and rural areas tend to be more affordable. However, many factors contribute to the average price of a home, such as commute time or proximity to the waterfront. The Home Listing Report is a helpful reference, so you can gauge how your area compares to other parts of the country.
Local industry plays a role as well. In the case of Los Altos, which is ranked as the most expensive market in America, the continued success of many tech companies contributes to the boom.
This information can be useful, whether youre planning to put your property on the market or youre looking to relocate. For example, if you are scoping out a neighborhood where home prices are on the verge of increasing, area features to look out for include cultural institutions such as art galleries and performance spaces as well as such factors as unique architecture and proximity to mass transit and other trendy areas.
Edwards also recommends doing some quantitative research, including talking to your realtor about how fast properties are selling in your area and whether business owners are investing in the neighborhood.
Buying or selling a home is a huge emotional and financial decision, Edwards said. By doing your homework beforehand, you will be able to take some of the uncertainty out of the process.
Remember, while this information is very useful for homeowners and prospective home buyers, its by no means a replacement for a professional real estate agent who understands local conditions.
For more details about the report, or to see how your area stacks up, visit hlr.coldwellbanker.com.
For many people, a home is their biggest investment and largest asset. Be savvy and stay informed about the ins and outs of its value.Add a comment