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Articles  >>  Factors In Determing Home Value In The St. George Utah Real Estate

Factors in determing home value in the St. George Utah Real Estate

There are many aspects involved when determining home values in the St. George and Southern Utah real estate market. This article will be helpful in understanding the factors that determine home value.

There are multiple factors that need to be considered when home value is determined in the Southern Utah Real Estate market. The most influential factor is probably “location, location, location”. When comparing identical homes in different neighborhoods, there can be a significant price difference just because of its location.


 

Other noticeable factors include:

  • Location
  • Size (square footage, number of bedrooms and bathrooms, size of living room, kitchen etc)
  • Yard (landscaping, pool,
  • Materials used to build the home (granite or formica, tile or linoleum, etc)
  • Age of the home (the year the home was built)
  • Comparables (what similar homes in the same neighborhood are selling for)

The size of the home is another factor that impacts the value of a home significantly. A home with more square footage is obviously going to be worth more than one with less square footage. It’s typical to find homes that have more bedrooms and bathrooms to have a higher home value.

The number of current comparable listings on the market is another factor that determines home value. Your home will be more valuable when there are less listings on the market, especially if it’s in a desirable location. It’s the basic concept of supply and demand, which has a dramatic effect on the value of a home. Home prices will be higher if the available homes for sale are fewer, and unique. When there is a strong demand for real estate the competition rises and profits and values are high. When this happens, building and development increases. However, if there are plenty of homes similar to yours on the market, the home value will be lower. It can turn to devastating lows when there aren’t many buyers. Fewer buyers create a “buyer’s market”. This is due to an economy in recession, lenders changing the loan requirements, and a struggling housing market. Something seen in St. George back in 2008-09 was the collapse of the market because of the oversupply of houses created by a surplus of competition. Currently in St.George Real Estate market, the demand is higher but the inventory of homes are lower. This then is creating values to increase once again.

One of the final factors in determining home value is time. If there is no rush on selling, your house can be priced higher because you can wait for the right buyer to come along.  One thing to keep in mind is not pricing too high. This could potentially steer prospective buyers in away. If you need to sell your home quickly, it might be best to price your home lower in order to sell quickly. Pricing the home just above what it would sell easily creates an area of room for negotiation with a buyer or a gain from a buyer that just wants it at asking price.

These were just some of the many factors that contribute to determining home value. These factors, along with others like age of the home, condition, neighborhood, upgrades in the home and amenities available will be taken into consideration when pricing a home.


If you would like a free home evaluation, please contact us for more information.


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