What factors influence the price of a home?
While curb appeal, structural integrity and a brand new set of appliances can impact a home’s value, there is one factor that seems to reign supreme.
“Homeownership is one of the most solid long-term investments one can make, but it’s important to recognize just how much the location of a home can impact the value,” says Budge Huskey, president and chief executive officer of Coldwell Banker Real Estate.
The new Coldwell Banker Home Listing Report, a highly extensive home price comparison tool, analyzes the listing price of more than 81,000 four-bedroom, two-bathroom homes in more than 2,700 markets throughout the United States.
The report found some startling facts: the national average listing price of a four-bedroom, two-bathroom home is $302,632, but all of the top 100 affordable markets in the country have an average listing price under $135,000. Meanwhile, all of the top 25 most expensive markets are $1 million or more. The price difference between the most expensive community in California and the most affordable in Ohio is $2.2 million.
So what accounts for this major value discrepancy in similar-sized homes? Here are several ways in which “where” matters most.
Job opportunities available in a given sector can have a huge impact on the market. For example, the continued tech sector growth in Silicon Valley is one of the factors making it one of those most expensive communities in the country.
Over time, revitalization efforts can make certain communities more attractive to buyers. When a city or region sees an economic and cultural renaissance this influences the market. Buyers value related factors like safety, a walkable main street, public transit options and green spaces.
You may not have children, but it’s still important to investigate the quality of local schools. This factor can have a major impact on every homeowner.
Regional factors can have a huge effect on a given locality’s pricing. These can include year-round weather patterns, proximity to natural beauty like beaches and mountains for outdoor activities like skiing and surfing, and commuting outlook.
For more details about the report, or to see how your area stacks up, visit hlr.coldwellbanker.com.
Buying or selling a home is a very emotional process. Whether you’re listing your home or thinking of moving, take location into consideration. Doing so can help you determine your lifestyle priorities and place an appropriate value on a particular property.