As of 2021, the average cost of a home in Arizona was $376,369, which is above the average in most other states.
Of course, house prices fluctuate and vary by a home's size, location, and condition. But you'll want to learn the fair market value of your home if you decide to sell it.
The fair market value is the price someone is willing to pay today for your house. The real estate market bases home values on factors.
Learning these factors can help you determine your home's value and ways to improve it. Here are some of the primary ones.
Location
You can determine your home's appraisal value by hiring an appraiser. An appraiser knows the factors to consider when calculating a home's value, and its location is one of these.
Homes in safe and desirable locations have higher market prices because people want to live there. This is why you'll find low home listing prices in bad neighborhoods.
Size
Larger homes have higher market prices than smaller homes, so size matters.
In fact, you can usually find out a home's price per square foot by reading its listing. Real estate agents include this feature on listings, allowing buyers to compare home prices.
Pool vs. No Pool
Next, does the house have a pool? This factor matters because pools are valuable and desirable. People shopping for homes will pay higher prices for homes with pools.
Of course, pool features also matter. For example, how big is the pool, and what type is it? Is the pool in great condition, or does it need work?
Additionally, a hot tub also adds value. Therefore, homes with pools and hot tubs have higher fair market values than homes without.
Condition
Homebuyers spend money determining a home's condition before buying it. This happens because a home's condition affects its value.
A turnkey home is a house that doesn't require any work. Conversely, a fixer-upper is a home that needs work. When calculating fair market value, you'll find that turnkey homes are worth more because of their condition.
Current Demand for Homes
Another factor that greatly impacts home values is the current demand for homes. Is the market a buyer's or seller's market?
Home prices rise during a seller's market, while they fall during a buyer's market.
Property cash buyers understand how this works and how to determine a property's fair market value. You can contact one to find out your home's value to a real estate investor.
These Factors Affect the Fair Market Value of Your Home
Home prices vary by these factors. However, selling a house is more challenging when the demand for homes decreases. If you don't have time to wait for a buyer, you could sell your home instantly to a cash buyer.
A cash buyer looks at the fair market value of your home and makes a cash offer.
Contact us if you'd like an offer. We buy houses in Phoenix, AZ, and the surrounding areas and pay cash for all properties.
