How to Determine Your Home's Value

by Debbie Goldberg 02/13/2022

The difference between home price and home value causes confusion for many buyers and sellers. Both price and value are a combination of many variables that are constantly changing. Understanding what can affect home value will help you understand and navigate the market. Here are the key factors that go into determining a home’s value:

Comps

“Comp” is real estate lingo for a home in your area that’s comparable to yours. Real estate professionals research the value and prices of similar homes and use that as a guide for how to price yours on the market.

Location

Prices in specific locations can affect your home’s value. If your area has become more desirable or popular with a particular group of homeowners, you may see an increase in home value. This is because the desirability of a specific location drives up the prices of the properties.

Size & Usable Space

The size of your home is vastly important in determining valuation. The most commonly used method of pricing based on size is with price by square foot or the total price divided by the available square footage. Price per square foot can vary depending on other factors, but the size and usable space of your property is key in determining the value.

Age & Condition

Usually, newer homes get higher values assigned by appraisers. A lot of this has to do with systems and structure of the home. For example, new plumbing, electrical and modern roof techniques fetch a higher price for their reliability and energy efficiency. Homes that need renovations or repairs before they’re livable may have a lower value, as most buyers prefer to spend more on a move-in ready property.

Local & National Economy

Large-scale trends on a local, state or national level also affect your home’s value. The big picture view of the overall economy might determine whether your home value is higher or lower because of factors like employment rate and wage growth. Staying up to date on the economy and housing market at large will help in determining the value of your home.

Home valuation is not an exact calculation. There are many variables that go into a home’s perceived value and even then, the number is just an estimate. However, the more you understand about these key variables, the more you’ll understand the value of your home.

About the Author

Debbie Goldberg

I'm a full time Realtor with over 30 years of experience yet young enough to embrace today's ever-changing scope of marketing and technology. Having grown up in Connecticut and moved many times (too many to count!) I can empathize with today's buyers and sellers. Strictly maintaining ethical standards and being a fierce advocate on behalf of my clients are things I take very seriously. As a buyer, you can expect me to listen to and evaluate your real estate wants and needs. I can assist in explaining relevant forms, agreements, and closing procedures. I will guide you through the process of finding the right home, negotiating your offer, adhering to all contract dates and terms as well as final walk through and closing procedures. As a seller, I will listen to and evaluate your goals, needs, and timing in order to properly price your home to get the maximum exposure needed to attract the right buyers. In addition to negotiating on your behalf, I will make sure we communicate throughout the entire process as we navigate the contract terms, finance and inspection contingencies, as well as all closing procedures. I was born in Japan, grew up in Hamden and lived in New York, Ohio and Southern California before settling down in New Haven county to raise two kids, two dogs and a cat. I'm passionate about good food and love to bake. Some of my free time has been spent volunteering at Temple Beth Sholom, a synagogue where my family has been members for over 40 years. I also spend time at Tower One/Tower East, an assisted living center in New Haven where my mother-in-law now resides. 30 years of helping buyers and sellers achieve their goals has given me the peace of mind to know that what I do everyday matters. If you are thinking of buying or selling please keep me in mind.