Is bigger always better? 8 factors that enhance a home's value
The housing market is a hot topic of conversation these days. That might have you wondering what home features really have an effect on a home’s value. Realtor.com asked that same question! To answer it, they conducted a nation wide study of millions of home sales. They came up with these 8 factors that enhance a home’s value. While some of these features are pretty straight forward (location obviously matters to a properties price), there’s some other features that might surprise you. For example, bigger isn’t always better. Read on to find out more…
Homes with a view
Homes with a view, whether it is a greenbelt, lake, a mountain, increased their home’s value by at least 5%. The most profitable view? The homes overlooking a park.
In terms of garages, many home owners might assume that the more room for cars you have, the quicker your home will gain equity. However this is not the case! Realtor.com found that the garage “sweet spot” is one that holds 2 cars! 2 car garages appreciate by 6.4% annually, versus 6% for a single car or 3.8% for 3 cars.
Open floor plan
While the open floor concept isn’t as popular as it once was, it’s still the smartest choice from an investment point of view. Open concept floorplans appreciate at 7.4% annually.
When it comes to a homes style, newer is better. Modern/contemporary homes increase in value by 7.7% per year, as opposed to bungalows (5.5%), traditional (5.6%), ranch (4.5%), Craftsman (3.7%) and Victorian (2.2%).
This feature might be the biggest surprise on the list! Most homeowners assume that bigger equals better. Turns out that’s not the case! In the last five years, homes under 1200 sq ft have appreciated by an average of 7.5% per year. This is likely due to retiring Baby Boomers “downsizing” to smaller spaces.
The more bedrooms a home has, the slower it appreciates. Homes with one bedroom were the most profitable at 7.2%, followed by two bedrooms (6.6%), three bedrooms (6.3%), and four bedrooms (4.9%).
The right amenities
New home buyers are seeking homes with certain features, which causes homes that showcase those to go up in value. Looking for the best amenities to invest in? A patio, hardwood flooring, and a fireplace.
The old saying goes, when it comes to real estate it’s all about location, location, location! This continues to be the case. What locations are the most desired? Homes in urban areas near mass transportation, followed by those near good schools, and finally those near shopping centers.