Factors that Can Increase or Decrease the Value

Posted by Gurpreet Ghatehora on Friday, May 13th, 2016 at 9:45am.

When it comes to your home’s value, there are many things that can be selling points. Some are quite obvious, like the square footage or having a garage, but there are others you may have never thought of, like being close to transit or a supermarket. The following is some insight into how some factors may increase or decrease your home’s value.

1. Being Near Important Things

If you live in a big city, you’re probably aware that being close to public transit is a good selling point, but did you know by how much? According to some results, the amount your house can increase in value by is as much as $26,000, if it’s near public transit. That is a substantial amount of money, but it isn’t the only selling point related to location. Being near a supermarket can increase your value by a significant amount, relative to how much lower it is than the national average of 15 minutes away. Being near the water adds a significant amount of money to a property’s value, as much as $90,000 in many places. But being near an abandoned building will cost you about $28,000.

2. Extra Room

The average new home built today is 2,150 sq. ft. That means homes, at least single-family units, must be over that amount to be more valuable. The same goes the other way, with many homes losing value as they get smaller than 2,150 sq. ft. On average, your home will increase in value by $13,000 for every extra 500 feet. The number of bedrooms is important as well, since it is largely how we judge size according to ads and listings. Adding a third bedroom to your home can increase the value by nearly $45,000. An extra bedroom usually adds $10,000.

3. Removed Fireplaces

When it comes to fireplaces, especially in older homes, people often simply cover them up instead of keep them well-maintained. This is often a mistake, since prospective buyers will be informed of the former fireplace, and think the house worth less. Most homes end up decreasing the value of their home by $24,000 when they remove the fireplace.

4. The Feeling of Safety

Your surrounding neighbourhood is extremely important to your home’s value, so it’s important to keep your home looking its best. Of course, bad smells, old roads, and other nearby issues can cost you up to $6,000, with the amount going up if you have metal bars on your windows.

In today’s market, knowing the value of your home is extremely important. Be sure to make yourself familiar with factors that increase your home’s value, as well ass the things that lower its price. Some of them are out of your control, but man are not. Do things like add a bedroom or more square footage, and be sure to keep your fireplace. With these sorts of ideas, you can help your home increase in value.

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