Whether I am a buyer or seller to sell my house FAST, I always curious about how the market value of a property is determined. The following information will help I found gain a better understanding of this.
You can spruce up the interior of your home all you like, but always remember that external factors play a part in determining value. For instance, having a great home that has no front yard and terrible curb appeal can make your home worth less than a comparable home on the next lot with a great yard. In additions, things like broken sidewalks, oily driveways and exterior damages play a role as well.
Supply And Demand
This is a very simple concept, so pay attention. The law of supply and demand can make the value of a home rise and fall significantly. If there is a huge demand for property in your area, you can take a seemingly modest house and value it much higher than normal. On the flip side, if there are far more houses than buyers, the opposite is true, which means great homes may be worth less than owners had hoped for.
As far as location goes, this applies to the actual size of the home and lot, but where the home is situated about things like schools and grocery stores is essential too. Homes that are located near attractions, hospitals, great school districts and grocery stores are worth more than those that are not.
You may have always wondered how people determine the market value of homes in NJ, and now you know. Keep all of this in mind the next time you are a party in a home sale; whether you are the one buying property or the one selling it.