Determining The Right Price to Pay For A Home
The market value of a home is what a buyer will pay for it in the current market. There are many factors that contribute to the market value of a home, including:
- Location (busier streets sell for less, houses on busy corners sell for less, quieter and tree lined streets sell for more)
- Curb appeal
- Floor plan
- Bedrooms/Bathrooms
- Interesting architecture and details
- Swimming pool and backyard features, including size of the yard
- House size and lot size
- Cosmetic upgrades (especially for the kitchen, bathrooms, and master bedroom)
- Sunshine
- Supply/demand
Price is a complex formulation based on all these factors, not just house size or lot size. Computer generated valuations, like on Zillow or Redfin, have no way of evaluating all the factors that contribute to value, so they will generate an average price based mostly on square footage and general location. Tread carefully when relying on computer generated valuations or valuations based on house size or lot size alone. A valuation needs to be a summary of all the factors that contribute to value.