I have written a few posts about different factors that add definitive value to your home. Most of these have been hard features within the home, such as open living areas, kitchens that are the emphasis of the layout and yard features. I have also written posts about things little things that a seller can do to help boost the sale of their home. Inman News recently published an article titled, "6 factors that impact the value of a home," where the author discusses factors that help sell a home according to a list published by House Logic. The interesting thing about this list is that all of these factors except one are external factors that affect the value of the home. This lists emphasizes the value of things that a homeowner doesn't necessarily have any control over. The only item on this list that a homeowner can control isn't even something that is easy to achieve. This list points out the importance of considering the locality of your home before selling and how the value of your home can be affected by the presence or lack of presence of similar nearby amenities.
The 6 factors that affect your home's value are:
- County or State Parks and Golf Courses
This is no surprise. People like to have access to public spaces as far as county, state and national parks go. Even small, local parks will increase the value of your home. Golf Courses are also no surprise here. Golf courses are often synonymous with financial well-being and attract those who enjoy the sport. A home that is in near proximity of any of these things can expect an increase of 8-20%!
- Living Near a Walmart
According to studies, living within a mile of a 24 hour Walmart can boost the value of your home by 1% or more. I would imagine that this would also apply to any other big box store like Walmart that stays open 24 hours.
People love neighborhoods that are walkable. People especially love areas that in walking distance to stores, dining and public spaces like those mentioned above. Of course, walkable areas are usually in more urban markets are also usually inherently pricier.
- Additional Living Space
This is the only factor on this list that can be affected directly by the home owner. Though, not for cheap. These additional spaces are detached ones like mother-in-law suites, separate apartments or garage apartments. The home may have already included one of these accessory dwelling units, as they are called, which the homeowner would have likely paid a premium for. If a unit like this didn't already exist on the property, then the homeowner may have but one, which is quite pricey! A general rule of thumb is that an ADU should cost about 25% of what the home is worth. This also means that the sales price can be increased by anywhere from 25-50%! These types of units are very popular because they can create additional sources of income by being rented out.
- Professional Sports Arena
This is a strange one. Professional sports arenas only exist in the larger markets, which are normally very expensive to begin with. There doesn't seem to be any real metric on how much being in proximity to an arena can increase the value, but it certainly helps. The presence of one of these definitely has it's downsides, too. The traffic would be greatly affected, as you can imagine.
Trees are extremely appealing to home buyers. Whether they be on the property in questions or on the street, people value trees, flowers, etc. The presence of mature trees on the property can increase the value 2% or more. The presence of mature trees on the street and the property can increase the value 3.5% or more!
A lot of people have a hard time grappling the list price of properties that they feel aren't worth what the seller is asking for. Much of the time, the list price of a home is also dependent upon what the local amenities are. This is why you often see older, more established neighborhoods with homes that seem small and dated but are listed for outrageous amounts. It is because these neighborhoods have created growth around them and those surrounding areas have had time to flourish. Many people are willing to pony up and pay extra for a home in proximity to these things. Those who are not should be willing to try to find upcoming neighborhoods that will hopefully have things like these sprout up around them.
As always, if you need any help with your real estate needs, feel free to reach out to me! That's what I'm here for. Let me know if you have any questions or concerns!
Troy Franklin Gandee