Why is Your Home Not Worth as Much as the Neighbor's?
When you decide to list your home for sale you are tasked with the decision of what price to list your home for. How do you do it right? How do you find the right price to list your home for the best success? Even a home in a high-demand market can sell less successfully if it is priced too high or even too low.
What if you use the tool of finding comparable home values for your neighborhood and find that your neighbor’s home is valued higher than yours? Why is your home not worth as much money as the one-two doors down the street?
Here are some insights that appraisers give as to why a home could be of less value than you expected.
There are planes trains and automobiles zooming past the home at all hours
There are many things that can be controlled when it comes to ensuring the value of your home and there are also some that are out of your reach. Those are most often things that impact the quality of the property that is outside of the property lines.
Properties that are on or near busy roads, or high centers of transportation, are impacted by those items. For example, the biggest factor of living on a busy street is the constant hum of road noise that is uncontrollable yet still heard. This makes a big impact on the quality of living on the property.
There are far too many upgrades
Updating and adding nice amenities to your home can increase the value of a home, but you should never expect to get what you paid for out of the upgrades. Spending $50,000 on home improvements will not guarantee that your house will sell for an additional $50,000. This is especially true if the homes around you are not selling for that price point.
Any home improvement choices should be made with the plans of selling in the future in mind. Many times, people will renovate their home for their utmost personal wants and comfort not thinking about when they plan to list the home for sale and what a potential buyer is going to see from it.
Improvement choices should be kept similar with homes around you to help you recoup as much renovation cost as possible when you go to sell.
The fine details of your home do not match the details of your neighbors down the street
The biggest answer to the question as to why your home is not valued as high as your neighbor's is the simple fact that the actual final appraised value of a home depends on several factors of the actual property. For example, your neighbor’s home could be updated with items people are in demand for and seeking out in properties in that particular neighborhood.
If homebuyers are seeking out your neighborhood because the homes offer private pools for example, and yours does not have one, this can take a big hit to your property value. Or if your neighbor has a three-car garage and you only have a two-car garage this will cause home values to differ for homes sitting on the same street.
Maybe the case comes down to the fact that your neighbor has a larger plot of land. In all actuality when it comes to the value of a property it is said that most of the value lies in the actual physical land and the desirability of the location of that land. If the house down the street has twice the amount of yard, this will cause it to have a significantly higher fair market value.
For more information on purchasing a home in Columbus Ohio, or selling a home in Columbus Ohio, please contact us anytime.