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Michael Pogue

Loan Officer

NMLS: 85133

The Surprising Factors That Could Make Your Home Worth More!

When you own a home, seeing its value increase over time is the ultimate goal. But what exactly drives property values up? Whether you’re a first-time homeowner or have been in the game for a while, understanding the factors that make your home gain value can help you make smart decisions to maximize your investment.

Here’s a breakdown of the key elements that impact your home’s value.

1. Location, Location, Location

You’ve probably heard it before—location is everything in real estate. The neighborhood, proximity to good schools, shopping, parks, and other amenities can significantly boost your home’s value. Homes in desirable locations tend to appreciate faster. If you’re near new infrastructure projects or trendy areas, that’s a bonus, too. The walkability and access to transportation can also add to the appeal.

2. Supply and Demand

Like any market, real estate is driven by supply and demand. If there are more buyers than available homes in your area, the value of your home may rise. In contrast, if there are too many homes for sale and fewer buyers, the price may stagnate or even drop. Keeping an eye on local market trends can give you a sense of how supply and demand might affect your home’s value.

3. Real Estate Comps

Real estate comparisons, or "comps," are a big factor in determining your home's value. Comps are recent sales of similar homes in your area. These prices are used as a benchmark for determining how much your home is worth. If the houses around you are selling at higher prices, it’s a good sign your home’s value is rising as well.

4. Size and Usable Space

The bigger the home, the higher the value, right? Well, not exactly. The overall square footage matters, but so does the usable space. A well-laid-out home with functional living areas will be more valuable than a home with a lot of unusable space. Homes with more bedrooms and bathrooms also tend to attract higher prices.

5. Age and Condition

The age and condition of your home can play a major role in its value. While older homes can have charm and character, buyers may be wary of potential maintenance issues. Keeping your home in good condition—whether it’s through regular maintenance or larger projects like replacing the roof or upgrading the HVAC system—will help it retain and gain value over time.

6. Upgrades and Updates

Home improvements are a fantastic way to boost your property’s value, especially if you focus on high-ROI upgrades. Think kitchen remodels, bathroom updates, or adding energy-efficient appliances. Curb appeal also counts—fresh landscaping or a new front door can increase your home’s attractiveness and, in turn, its value.

 7. Zoning Regulations

Sometimes, what’s going on around your home affects its value. Zoning regulations, like new developments in your area, can make your property more or less attractive. Being aware of potential zoning changes can help you stay ahead of the curve.

8. Interest Rates

The cost of borrowing money to buy a home directly affects its value. When interest rates are low, more people can afford to buy homes, which increases demand and, therefore, home prices. On the flip side, when interest rates rise, it can slow the housing market.

9. A Healthy Economy

A booming economy can raise property values, as more people have the financial stability to buy homes. Economic growth generally correlates with wage increases, low unemployment, and greater consumer confidence—all of which contribute to a strong housing market.

10. Politics and Disasters

Believe it or not, local and national politics can also play a role in home values. Tax policies, housing regulations, and government incentives can either help or hurt the market. Natural disasters, unfortunately, can lower the value of homes, especially if your area is prone to floods, earthquakes, or wildfires.

11. Generational Shifts

Lastly, generational preferences can shape the market. As younger generations enter the market, their preferences in home size, style, and location can shift demand. If your home fits the bill, you could see its value rise as more buyers come knocking.

When you understand what factors drive your home’s value, you’re better positioned to make decisions that could increase your investment’s worth.

One way to capitalize on rising home values is by refinancing. If your home has appreciated since you bought it, refinancing can help you tap into that equity, lower your interest rate, or reduce your monthly payment.

Want to learn more about how your home’s value impacts your refinancing options? Contact your local mortgage professional to get personalized advice and explore the best options for you!


* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.

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