When you buy a new home, you’re not just investing in an individual property—you’re investing in a location and everything that comes with it. From the nearby homes right down to the residents who occupy those homes, these micro level constituents can affect your property value.
Ever heard the expression “a rising tide lifts all boats”? This aphorism, loosely meaning individual improvements benefit everyone nearby, accurately portrays how property value works in real estate terms. Although you have far more influence over your home’s property value than anyone, your neighbors play an important role. Here’s why.
Setting the Bar for Property Value
One of the first things experts look at when determining property value is how much similar homes have recently sold for in the area. While no two houses are exactly alike, they share similar features like approximate square footage, number of bedrooms/bathrooms, and the year they were constructed. While they can’t tell the whole story, these metrics provide a useful benchmark when determining the list price on a for sale property.
At Offerpad, our experts fully understand that many additional factors go into making your house a home. When you request a purchase offer from us, we always encourage you to provide photos and give us a full download on your home’s distinct qualities—things like recent repairs/upgrades, add-ons, and more—that could benefit your list price. The more detail you provide, the better we can ensure you receive our best offer right out of the gate, saving you time (and money) when selling your home. Who doesn’t want that?
Expanding Your Home Search
Just as a rising tide lifts all boats in real estate, the reverse can certainly be said. Visibly distressed homes in your neighborhood can negatively affect your property value—even turn some buyers away altogether in some cases.
Are you touring a home you’re potentially interested in buying? Expand your search to include the surrounding neighborhoods. Do the homes look well maintained? If you’re seriously considering a property, widen your scope with some online research; look at ratings for nearby school districts and crime rates for the area—these factors will influence your property value down the line.
Do keep in mind that neighborhood appeal frequently comes down to personal choice—don’t conflate property value with your aesthetic preferences.
A Word on HOA’s
It’s no secret that opinions on HOA’s are widely varied, but their purpose stems from preserving property value for homeowners in their community. Those rules about having too many weeds around your driveway might seem asinine, but you may be glad they exist once you decide to sell your home as it requires residents to maintain the overall curb appeal of the neighborhood.
Do your research before buying. When considering whether to buy a home with an HOA, see how it might affect you as a future homeowner—we can help.
Take Control of Your Home Buy or Sale
While there are many outside forces that shape your experience as a homeowner, nobody gives you more control over your home buy or sale than Offerpad.
The buying options available through Offerpad Home Loans and our innovative Homebuilder Alliance program make your next home more accessible than ever.
Our flexible selling solutions allow us to tailor a right-size solution to your situation and meet your individual goals.
Whatever you’re looking for in real estate, Offerpad delivers an unrivaled experience. Visit us at Offerpad.com to see how we can simplify your buying or selling situation!