Whether you’re the average homeowner looking to put your property on the market or a professional investor, it’s good to know what determines how much your home is worth.
In order to better understand how everything comes together, here are 5 things that affect your property value in Los Angeles.
Location and Neighborhood
As you have probably heard a few times, where your property resides has a large impact on its value.
A neighborhood’s proximity to shopping, entertainment, hospitals, or main traffic thoroughfares can certainly have something to do with your home’s value. The idea here is for the home to be within easy walking or driving distance, but not so close that you have to deal with the increased noise or traffic from these establishments.
The value of the surrounding neighborhood properties will also play a part in your home’s value, especially if any of the houses in your neighborhood sold recently. This is referred to as neighborhood comp, or “comparable sale,” and is a strong reference point used by real estate agents and appraisers in determining your property value in Los Angeles.
Size Things up
Of course, it’s not just the places and things surrounding your house that will figure into its value, but how much house there is to sell.
Buyers are looking to get a property that will suit their needs and provide what they feel is a good value. Different buyers are looking for different things, and your buyers will be looking at the available space in order to determine how they can best use that available space.
Some buyers may appreciate a large garage to put in a workshop, while others will see a workshop as useless and prefer a four seasons room. It’s all in the eye of the beholder, but the more available living space, the better.
Home Age and Condition
While this has become a bit less of an issue these days with the prominence of house flippers, the overall state of everything in the home can of course have a large impact on your property value in Los Angeles.
There is a bit of a sliding scale when it comes to a home’s age. In some cases, an older home that has been cared for can appreciate in part due to the craftsmanship and attention to detail. Buyers are interested in owning a home with character, so don’t feel dissuaded if you own an older property.
Making sure everything is taken care of is more important than the exact age of the home.
Out with the Old, in with the New
While living in your home, chances are you made some changes.
Any upgrades or updates you have done to the property will go a long way to increase the value of your home and aren’t something to take lightly. Making the effort to highlight these upgrades to potential buyers is a great way to increase the value to individual buyers.
The Economy Overall
Unfortunately, the health of the local and wider economies will have a big part to play in the value of your home.
Keeping an eye on interest rates is a good way to know how your home’s value may fluctuate over time. Lower interest rates mean that borrowers will likely qualify for a greater loan amount approximately equal to what their monthly payment would have been under the old, higher interest rate.
With increased purchasing power allowed by their mortgage lender, this means more potential buyers for your property, better offers, and greater value in the current market.