It’s easy to look at the glass half-full, especially where money is concerned. As home sellers, we tend to undervalue a property’s worth right out of the gate. What you may not realize, however, is the hidden value of your home. Despite its small size, or its need for updates, you may be surprised to learn how much your house is truly worth in the eyes of investors or house hunters.
A Home’s True Value
One important factor to keep in mind in learning your home’s true value is the economy. In general, expect a home’s value to (in general) increase 3% to 4% every year. Even better news: From 2011 to 2016, the national housing marketing has been growing at an even greater rate, with properties enjoying, on average, a 6.3% percent grown… per year. That means that if it’s been a couple of years since you’ve calculated the value of your home, it’s time to do so again. Chances are you’ll see a very nice appreciation.
If you own a small home, thing s are looking even better. On trend this year is smaller homes as Americans aim to de-clutter, think tinier, and simplify their lives. Also driving up the value of smaller homes are Millennials, who value smaller homes and are willing to trade space for proximity to work and city features such as coffee shops, parks, or bars. According to Jonathan Miller, President of the real estate appraisal firm Miller Samuel, “Because the market [for smaller homes] is tighter, prices tend to increase more quickly.” Turn that advantage into a higher sale price of your property.
More Bedrooms Does Not = More Value (Necessarily)
Once upon a time, you could calculate – almost to the dollar – of a house based on its location and number of bedrooms it possessed. Not anymore. Buyers today are far more interested in a separate feature set, and more value is being placed on things like an open, flexible living area, a larger living room, and fully-functional bathroom(s). One surprising value-add right out of the gate: a garage. A two-car garage makes an enormous impact on the value of your house, offering a higher annual growth of a home’s overall value, up to an average of 6.4%. Considering the average American family now owns 1.9 cars, this makes perfect sense.
Get Evaluated Before You List
Because of the mercurial value of homes, it makes more sense than ever to partner with experienced real estate professionals to ensure you’re not missing any hidden value of your home. Don’t sell yourself short! When your home is tall or small, there’s hidden value within those walls, and it’s important to unlock its full potential.