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What's My Home Worth?

By
Real Estate Broker/Owner with Lotus Real Estate Services CalBRE 01725627

The news media has stories almost everyday talking about how much homes have gone up, yet many of us wonder, so what's my home worth?   In one of our last posts we shared the home market information for the US, with some very promising results for home price appreciation.

Of course the real estate market, and your home value, are all in what I call micro-markets.  By that, the home appreciation in your city is different than the home appreciation in your neighborhood, and may even be different on your block.  

So what really affects the value of your home?    

In our years working in the residential real estate market, the fundamentals have remained the same.  Yes, even though there are government programs that affect loans and prices, foreclosures, short sales, housing bubbles and recessions.  The fundamentals tend to be in two broad categories; 1)  the macro economic environment, 2) the micro market where you live.

Macro-Economic Factors

There are a host of factors that influence the macro economic climate for housing.   The global economy and the value of the dollar vs other currency affects the relative attractiveness of foreign investors in US housing.   The performance of stock and bonds has made real estate investment very favorable for a number of large hedge funds buying properties just past the bottom of their values.   The unemployment rate;  this one should be obvious, people who aren't working can't afford to buy a house, and may lose their house if they have a mortgage.   This one is somewhat circular; as the housing market increases, more jobs are created in the construction industry, landscaping, home improvement, home services, and more.  Of course government policy is a huge factor that influences the macro economic climate and house prices.

Micro-Economic Factors

These tend to be the old standards.

Location has a huge influence on home values.  Homes on the coasts are more desirable and demand a higher premium.    Homes in desirable areas, such as near lakes, with views, with horse property, on a cul de sac, on a quiet street, in an area with walking trails, and more, all command higher prices. 

Quality and Amenitiesof homes makes a huge difference in home values.   High quality finish work, usable floor plans, good positioning on the lot, quality exterior materials that are well maintained, nice, well kept landscaping, are just a few important factors.  Others include the size and layout of the kitchen, the quality of the appliances, cabinets, counter tops and floors.   Bathroom size, layout and finishes along with master bedroom size and features add to the list of fundamentals that affect your home's value.   

This is precisely why prep work is so important when you have decided to sell your home.  No one will pay top dollar for home that look like it needs a lot of work.

If you are considering selling your home,  check out our free on line home valuation at www.FreeCurrentHomeValues.com.

This web based service will provide a rough idea of the value of your home, and in today's market is likely to give you a  conservative estimate of what your home is worth.

Of course, if you'd like more information on the value of your home, and are interested in learning more about how we sell homes faster and for more money, contact us today.  

Hopefully this will give you some ideas and answers about What's My Home Worth

 

 

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