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Why It's Worth What It's Worth: Factors Affecting Home Value

Most of us know the mantra that answers," What are the top three factors that determine a home's value?" If you responded "Location, Location, Location" you're right. But what makes for a good location? And what is it about a particular home that gives it value?

Part of the answer is subjective – one person's ideal feature can be another person's deal breaker. But in general there are factors that affect a home's value and attract, or detract from its appeal to buyers.

Virtually every buyer will be a seller one day, so it pays for both potential buyers and sellers to pay attention to the characteristics that help determine how you present or future home will be valued relative to similar properties in your neighborhood:

Home Characteristics:

Area (square feet)
Structural condition
Total number of rooms
Number of bathrooms
Number of bedrooms
Fireplace(s)
Central air
Full, dry basement
Size of garage
Energy efficiency, utility costs
Landscaping, curb appeal

Community Characteristics:

Quiet, safe, clean, attractive neighborhood
Overall positive public perception of the community
Adequate fire and police protection
Quality public schools
Libraries and other cultural institutions
Proximity to shopping, restaurants, recreation
Access to public transportation
Well maintained infrastructure; roads, parks and other public recreation facilities
History of solid property values
Planned changes to zoning, or proposed development projects that could significantly alter the character of the community

Perhaps the main reason many people choose a particular home is that it simply feels like home. Smart buyers and sellers also keep in mind that a home also represents a big investment in time and money.

Before you decide to buy or sell, talk to an ERA Real Estate Agent about a comparative market analysis.