As real estate professionals specializing in Phoenix, Scottsdale, and Cave Creek, we evaluate home sales and determine market values for our clients on a daily basis. Figuring out a homes value isn’t an exact science, but there are a number of factors we can examine to help us determine a homes market value.
We start by using recent sales in the area as a benchmark for home values in a neighborhood. We then compare the subject property to those recent sales looking for differences. In our experience, these four factors have the biggest impact on determining a homes value.
In particular, the location of homes within the same community. Homes that allow for more privacy, like a cul-de-sac or a home directly adjacent to a natural area of open space (NAOS), will sell for more because of the added appeal to buyers. It’s why home builders charge lot premiums in new communities. Location can also bring down a homes value if, for example, it backs to a major street. A negative factor for many buyers due to increased road noise and foot traffic.
The more desired features a home has, the more buyers are willing to pay for that home. Pools are a great example in Phoenix as they are often a must-have feature for buyers. Other features that can add value may be a smart home system, an open floor plan, a single story home, an extra bedroom or an extra space in the garage.
Updates and Finishes.
Updates to a home effect value in two ways. First is the added cost to the homeowner in labor and material to complete the updates. The second is how much those updates appeal to buyers. A home with wood floors and granite counters will sell for more than a home with carpet and laminate counters because of the higher cost in materials and is more appealing to buyers. A home with brand new, trendy updates will sell for more than a home that was updated ten years ago because the updates are no longer new and the style may not appeal to as many buyers.
What kind of condition is the home in? Are the carpets old and worn out or the wood floors scratched and dinged up in several spots? Are there rooms in need of repainting? Are there obvious repairs that have been put off? Is the roof, AC, and pool equipment nearing the end of their expected lifespans? The worse a homes condition, the less it will sell for. Luckily for homeowners, this is one factor they can control. How you care for your home now has a direct impact on how much it sells for in the future.
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Call or text us at 480-648-9253 if we can answer any questions you may have about buying or selling a home, current market conditions in your area, or be of any assistance in the future.