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Eventually, most people take the initiative to purchase their first home. During this process, several people made big mistakes and ended up with a home that regularly depreciated in value. Luck for you, they made those mistakes, so you don’t have to. Below is a list of the most important factors that impact property values to make a sound decision and live in a comfortable home.
Location
Everyone hears the old saying, “location, location, location.” It’s astonishing how the same word repeated three times could stick so well. Despite the repetition, people are still buying nice houses in poor locations. The location of your home has several factors that can impact your home’s property value.
For example, the school district where your home is located has a massive impact on the property’s value. Not to mention the accessibility of public transportation, restaurants, hiking trails, and more impact the price of your home. Essentially, the more money flows through your community; the more your property will be worth.
Interest Rates
When you have already purchased a house or any sort of property, and you are looking to get it appraised, you should ask yourself, “What are mortgage rates looking like right now?”
If the federal government increases interest rates on mortgage loans, then getting an appraisal could be a good idea because the price of your home might go up. On the contrary, if interest rates decrease, as they did during the pandemic, you might be interested in refinancing your property to decrease the monthly mortgage.
Supply and Demand
Supply and demand are one of the most rudimentary economic principles, but they could be the most important, and it applies to the real estate market in more ways than one. Suppose there is a popular suburban neighborhood, and multiple people are interested in buying a house.
In that case, that is called a seller’s market, and the selling price of that house could be much higher than others in the neighborhood. If that house sells at a higher price, then your property value would increase. It also works the opposite way. If the popularity of your neighborhood decreases and a house sells for much less than expected, your property value decreases.
Conclusion
Many people see buying a home as an investment, hoping to make money. Though there are strategies to be successful in the real estate market, you have to keep in mind that this is a place where you have to live for the rest of your life. Instead of seeing it as a monetary investment, look at it as a memory investment.
Buy a house where your kids will have a healthy and stable life. Buy a house, and turn it into a home, not a means to make money. That being said, if you find yourself asking, “What is my home worth?” There are some tips to save you money and possibly make you some extra change.
See also: How to Plan a Long-distance Move