The price is the thing. Getting maximum value for your home. Part 3
What external factors affect the value of a home?
External influences on value:
- Interest rates
- New listing
- Area competition
- Local economy
- Builder offerings
- Neighbor’s price
A common mistake that many owners make is to focus solely on their home when determining
value. Yet in dynamic markets, many influencing factors are completely out of their control.
We’ve witnessed recent dramatic market change in which the economy, interest rates and financial
markets have negatively affected values.
The simple act of a neighbor reducing a price can lower street values. A subdivision of new
construction can lure buyers away from existing homes and lower their value.
What about internal influences on home value?
Internal influences on value:
The classic determinants of value are the intrinsic characteristics of location, size and amenities.
The cliché “The three most important factors of value are location, location, location.” has basis in fact.
Again, many sellers cite their home’s amenities and conditions as a reason to overprice.