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Top 5 Determinants of Your Home’s Value

Updated on March 31, 2010

The equity in your home is likely one of your greatest financial assets. Your house gives you a sense of security as well as a solid financial investment. The value of your home will impact your life in many ways, including when you can retire, negotiations regarding your property tax assessments, and where you can afford to live should you choose to move. Here are the top 5 factors that determine the value of your home. 

1.     Location

The location of your home is one of the biggest determinants to its value. The value of houses in your neighborhood, your proximity to public transportation, the school district that serves your neighborhood, and other factors play a part in the value of your home as it is affected by location. Realtors can give you information on the value of other homes near yours, or you can examine the materials offered in local houses for sale. Your home’s value will be affected by the value of homes around you as well as the desirability of the area in which your home is located.

2.     Curb Appeal

Your home’s “curb appeal” will factor greatly into the value of your home. “Curb appeal” refers to everything from the curb to the front door of your house, including your lawn, flowerbeds, gardens, or trees as well as the exterior of your home including your walls and windows. The general landscaping of your property and the exterior of your home will be prospective buyers’ first impression of the house’s general upkeep. If you are considering selling your home, spend some time making sure the exterior areas of your property are well kept.

3.              Size

The size of your home will also determine its value. Its square footage, the number of bedrooms and bathrooms it has, the number of acres it sits on—all these factors will play a part in its value.

4. Number of Comparable Listings on the Market

If there are many other houses on the market for sale that are similar to yours, this will decrease your home’s value. On the flip side, if not many houses like yours are on the market, your home will be more valuable.

5. Condition

If your home has been well cared for and properly maintained, it will be worth more. A home that has fallen into disrepair or been neglected will be worth much less.

Image Credit: coffeego, Flickr


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  • fdoleac profile image


    8 years ago from Hollis, New Hampshire

    Functionality is number 6.


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