When it comes to buying or selling a home, price is often the biggest question. But what exactly determines a home’s value? While some factors are within your control, others are not, and understanding the difference can help you make smarter decisions about your investment.
What Does Affect Your Home’s Value
1. Location, Location, Location
This is still the golden rule in real estate. Proximity to good schools, shopping, public transportation, and low crime rates can significantly increase your home’s value. Even being on a quiet street versus a busy one can make a difference.
2. Comparable Sales (Comps)
Appraisers and buyers look at recent sales of similar properties in your area to gauge value. These comps serve as a benchmark, especially when determining list price or negotiating offers.
3. Square Footage and Usable Space
Bigger isn’t always better, but more livable square footage usually means a higher price. Finished basements, attics, or extra bedrooms can boost value more than raw size alone.
4. Condition and Upgrades
Updated kitchens and bathrooms, modern appliances, and well-maintained systems (like HVAC or roofing) add real value. Cosmetic upgrades can help too, but structural or mechanical improvements typically bring a better return.
5. Curb Appeal
First impressions matter. A tidy yard, fresh paint, clean landscaping, and a welcoming entryway can positively influence a buyer’s perception—and your home’s value.
6. Market Conditions
Supply and demand play a major role. In a seller’s market, you may get more than expected. In a buyer’s market, even a great home may face pricing pressure.
What Doesn’t Affect Your Home’s Value (Much)
1. What You Paid for It
Buyers don’t care what you paid. Market value is based on current demand and comparable sales, not your original purchase price or what you need to make a profit.
2. Personal Sentiment
Emotional attachments or memories don’t add dollar value. Your home might hold sentimental worth, but that won’t influence appraisers or buyers.
3. Over-the-Top Custom Features
Built-in aquariums, themed rooms, or high-end luxury upgrades that don’t appeal to the average buyer can actually hurt resale potential. Unusual features may not add value if they limit appeal.
4. Minor Cosmetic Preferences
Paint colors, furniture, or décor styles aren’t major value drivers. While neutral and well-staged spaces can help homes sell faster, these don’t drastically alter valuation.
5. Unpermitted Work
Any renovations or additions without the proper permits won’t be counted in your home’s official square footage or value, even if they look great.
If you’re curious about what your home might be worth—or you’re considering selling in the future—understanding what truly impacts value is a smart first step. By focusing on what matters most and avoiding costly missteps, you can protect and even boost your investment over time.
Have questions about your home’s value or the local market? I’m here to help. Reach out any time for a personalized home valuation or to talk through your goals—whether you’re thinking of selling, renovating, or just planning ahead.
