Home values soar and fall, but when you look at them over an extended period of time, they almost always trend upward. Home values rise by about 3% to 4% annually, as reported by Realtor.com, and that’s just the average. Home values in the Seattle market increased by nearly 10.5 percent in the course of one year back in 2018. How? Let’s take a closer look at the factors that supercharge value.
Location, Location, Location
More than anything else, your home’s location determines its value. The truth is, your home’s structural value only increases if you remodel or add square footage. Land value is the driving force behind appreciation, says Investopedia. And what drives land value? Supply and demand. As the number of people clamoring to get into a desirable neighborhood increases, so do home values.
Several factors determine which neighborhoods buyers want to move into, such as the school district, proximity to amenities, social demographics and expected future growth. When there are more people wanting to move into a neighborhood than there are houses to accommodate them, home prices tend to go up fairly quickly.
Smart and Loaded With Technology
Technology is here to stay, and our devices are only going to get more interactive and connected as the years go by. People who are on the “smart home” bandwagon are looking for homes already equipped with their favorite technology, or at least prewired for it. Integrated security systems, thermostats, door locks and lighting are the most sought after features according to a CNET report. Homes with these features tend to appeal to a large swath of buyers, which can drive up the price.
Updated Kitchens and Bathrooms
We can’t have a discussion about home value without talking about kitchens and bathrooms. For decades, updated kitchens and baths have been the driving force for home value. So what are buyers looking for? According to a National Association of Home Buyers (NAHB) survey, 86% of buyers want an open-concept kitchen, 67% prefer stainless steel appliances and 57% seek out granite or stone countertops.
Numerous factors can affect your property’s value. No matter the location, you can take steps to increase the return on your investment. Get moving on select projects and upgrades to improve its value, and you’ll get the price you want when it’s time to sell.
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