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There are many different values to your home: emotional value, sentimental value, appraisal value, and market value. Let's concentrate on the market value and discuss how it differentiates from the market price of your home.
The market price is the price that a willing and qualified buyer will pay for a property, and what a seller will accept for it. This is determined mainly by the property's condition and local supply/demand, but sometimes does not account for the market value of the property.
The market value is much more complex than the market price, as it is different for every person. The market value is an opinion of what a property is worth based upon its features, the real estate market, and comparable properties. This can vary greatly from person to person, as what one may see as a benefit the other may see as unimportant, or even as a downfall.
Consider how a family with young children may highly value a home's close proximity to an excellent elementary school, and may pay more for this feature. Meanwhile, an elderly couple may not put any value in the school, but may highly value a home that is close to a bus stop because they don't drive - something the young family finds unimportant. Each buyer's personal values will impact their market value of a home.
Factors that can influence your home's market value:
Most people will place a higher value on homes that are close to job opportunities, good schools, shopping, and entertainment. They may also offer more for a home that is on a quiet street or cul-de-sac, in a private neighborhood, or a fair distance from other homes to maximize privacy.
A larger home with a lot of "livable space" can significantly increase a property's valuation. Bedrooms and bathrooms are the most highly valued, while "unlivable" space like garages and unfinished basements do not typically increase an offer, despite the extra square footage.
Age and Condition:
Newer homes (or homes that have been renovated) typically appraise at a higher value. Buyers will pay more upfront for new appliances, heating systems, plumbing, electrical, and roofing in order to avoid the cost and hassle of any major repairs down the line.
The Real Estate Market:
In a seller's market such as this one, buyers will typically place a higher value on a home to beat out the competition. Demand is high and inventory is low, so prospective buyers are increasing their offers to outbid each other. Interest rates can also impact valuation. The current low rates make it easier for buyers to offer more for a home because they know they will have lower monthly payments.
Right now rates are at historic lows, hovering around 2.8 – 3% for a 30 year fixed rate! If you want more information on interest rates, or if you would like to get pre-approved for a mortgage online, please click the link below. Emi is highly qualified and will be able to answer all your financing questions!
Please call me today at 201-247-6341 and I will be more than happy to send you a market analysis of your home. Or, simply click the link below and I can send you one online right now!
What is Your Home Worth in the 2021 Spring Market?
Don’t miss this absolutely fabulous Spring Market in Northern Bergen County!
Ana Moniz, ABR – "I’ll Lead You Home" 💫
Lifetime Member of the NJAR™ Distinguished Sales Club
Coldwell Banker Residential Brokerage 50 Broadway, Hillsdale, NJ 07642
cell- 201-247-6341 | office – (201) 930-8820 Ext. 441 | e-fax- 201-781-6712
www.AnaMonizRealEstate.com | https://www.anamonizrealestate.net/ | AnaMonizRealEstate@gmail.com