What external factors affect the value of a home?
A common mistake that many owners make is to focus soley on their home when determining the value. Yet in dynamic markets, many influencing factors are completely out of control.
We’ve witnessed recent dramatic market change in the economy, interest rates and financial markets have negatively affected values.
The simple act of a neighbor reducing a price can lower street values. A subdivision of new construction can lure buyers away from existing homes and lower their value.
- Interest rates
- New listing
- Area competition
- Local economy
- Builder offerings
- Neighbor’s price
What about internal influences on home value?
The classic determinants of value are the intrinsic characteristics of location, size and amenities. The cliche “the three most important factors of value are location, location, location” has basis in fact.
Again many sellers cite their home’s amenities and condition as a reason to overprice.