3 Major Factors that Affect House Prices

HomeBlog3 Major Factors that Affect House Prices

When you are thinking about selling your home, you naturally want to get the best price for it. Unfortunately, real estate prices can be affected by a number of different factors, often in complicated ways. Our team at Simpson Real Estate Appraisals wants to help you understand more about how house prices work so that you can make informed decisions about your own property. In this article we’ll be going over three of the major factors that can drive your price up or down.

3 Major Factors that Affect House Prices

  1. Location- It has been repeated so often that it has become cliché, but the adage that the most important factors in real estate prices are “location, location, and location,” still holds a lot of truth. When our team at Simpson Real Estate Appraisals assess the location of your home, we primarily look at three things: the quality of your local schools, the types and number of employment opportunities in the area, and your proximity to shopping, entertainment, and recreational centers.
  2. Size- Another significant factor in house prices is size. In general, home values are estimated in price per square foot–i.e. A $300,000 sale price divided by 3,000 square feet is $100 per square foot. The average price per square foot in your area can vary greatly, so $100 per square foot could be a bargain in some areas but a splurge in others. The amount of usable space in a home also matters a lot when it comes to pricing, as unfinished spaces such as garages, attics, and basements are typically not included in these calculations.
  3. Condition- A third key factor in calculating house prices is the age and condition of the property’s essential systems, such as the plumbing, wiring, and roof. Homes with newer components generally sell at higher prices because the buyer can be more certain that nothing will break down on them once they move in.

We at Simpson Real Estate Appraisals hope that this article has been helpful. If you would like further information on house pricing and how to set the right price for your home, just give us a call.