Myths
David Whalley

Myths about what affects your home’s value

Myths about what affects your home’s value

 

     Selling a home is a big decision that involves many factors and considerations. One of the most important things to consider when selling your home is its value.

     Unfortunately, there are lots of common myths that often prevent homeowners from getting the best value for their homes on the housing market. Believing that a home’s property value is based primarily on its location or thinking that making expensive renovations will always add value can be costly mistakes. Here we will discuss these myths in more detail and provide tips on how to maximize your home’s worth before you put it up for sale.

The myth that location is the most important factor

 

     Location is often touted as the most important factor when determining property value. While it’s true that living in an area with low crime rates, good schools, and plenty of amenities can all have a positive effect on your property’s worth, there are many more factors to consider when figuring out your home value. Factors like the condition of your home, local market trends and home prices, and how much a buyer is willing to pay for a property all play an important role in determining its value.

 

The myth that expensive renovations do not always add significant value to a home

 

     One of the most common myths about increasing a home’s value is that making expensive renovations will always add resale value. While renovating and updating a home can be beneficial in some cases, it is important to note that this is not always the case. Depending on the type of renovation work being done, how much money is spent, and the current condition of the home, renovations may not necessarily lead to a significant increase in value. In fact, certain kinds of renovations can actually detract from the value of a home if they are done incorrectly or are out of sync with current market trends.

     For instance, many people make the mistake of investing large amounts into traditional updates such as adding high-end countertops, energy efficient windows, or installing hardwood floors when those features may not be what buyers are looking for in the area. Doing so will not only cost more upfront but also might not result in added equity due to low demand from potential buyers.

     It’s more important to consider all aspects of your property before deciding whether or not you should invest money into renovations. Doing things like researching comparable properties in your area, consultations with your Whalley Group real estate agent, and assessments from qualified appraisers can help you get an accurate estimate of how much value certain improvements can bring and which ones are worth spending money on. Keeping up with popular trends and understanding what buyers are looking for before making any changes can ensure that you get top dollar when you’re ready to sell your home.

The myth that an appraisal doesn’t dictate the amount buyers will pay

 

     When it comes to figuring out how much a buyer will pay for your home, an appraisal is not the only factor. This can be confusing for some homeowners because appraisals are often important factors used by banks or mortgage lenders to determine if a property meets certain value requirements in order for someone to get a loan. While a home appraisal does provide an estimated value of what your property is worth, it doesn’t necessarily guarantee that you’ll receive that amount when you decide to sell.

     The appraisal process takes into account many factors such as overall condition, location factors, and features while coming up with its valuation. However, buyers may have their own preferences and expectations which means they could offer less or more than what was initially appraised. In addition to this, local housing market conditions can have an impact on the final sale price as well – if there’s high demand in your area due to low inventory then buyers could end up paying more than expected given that there’s more demand and competition among prospective purchasers trying to get their hands on the same house.

     Ultimately, the amount buyers will pay for a home changes all the time; meaning don’t put all your eggs in one basket with regards to relying solely on the appraisal results before deciding to sell.

The myth that pets in the home drive down its value

 

     Many sellers hear the myth that having pets in the home can drive down its market value. You can see this myth repeated on many real estate websites all over the internet. However, this is not always the case. While it is true that some buyers may be wary of pets in a home due to potential odors or damages, pet-friendly homes can still be appealing to others.

     When selling a home, it is important to maintain the property and make any necessary repairs or improvements such as touching up paint and cleaning carpets. While having pets in the home may not affect the fair market value of your property, having a pet-friendly environment can be beneficial for buyers who are also pet owners. This is definitely the majority of households in the USA.

     According to the 2019-2020 National Pet Owners Survey conducted by the American Pet Products Association, about 85 million American families (or 67%) own some kind of pet. This means that you might take steps to ensure that your home is pet-friendly such as installing pet gates and providing a fenced area for pets to roam or play in.

The myth that older buildings are always worth less to buyers