Home value determination based on home features

In the previous post, I talked about how to determine the offer price as home buyer, one of the area to consider is the home condition and home feature itself. This is an area to consider along with the comparable analysis and market condition.

1. Number of bedrooms and bathrooms. Intuitively, the more bedrooms the house has, the more expensive it is going to be. However, since 3-4 bedroom homes are more popular for most buyers, having 5+ bedroom is not necessarily going to add more values. Unless you absolutely need 5+ bedrooms for your family and your maids, don't put too much extra for more bedrooms. Same with bathrooms. 2 to 3 bath are good, but don't pay too much if more bath.

2. Lot and landscape. First of all, the lot shape should be rectangular in most normal neighborhoods and should be as level as possible. A lot of properties are using improvements done on the properties to add to listing price. Don't spend too much for those. For example, a swimming pool in the backyard is an extra feature, but it also cost money to maintain it. Unless you are fond of swimming pool, don't spend too much for it.

3. Property style. For the same square footage, the property can be a 2 stories house or 1 story house. If anything else is the same, 1 story home, AKA ranch style home is more expensive than 2 stories house, it is also more desired.

4. Fireplace. No much value added to the property since most people rarely use it

5. The view. A lot of properties make view as an enhanced feature. However, the liking of the view is entirely subjective. If the view really touches you and you are willing to pay more for that, it is entirely an emotional decision. Keeping it in mind though, if you do consider reselling the property, you know understand that potential buyers may not be like-minded to appreciate the view. So when you are making an purchase offer, don't pay too much for the view.

6. The kitchen. The kitchen is the center of the house since most activities are around the kitchen. The appliance should be new and modern for more value. In the modern desire, island kitchen is more popular now. It is large and also it is part of the entire living room where people can socialize and cook. Also, consider the kitchen that is close to the garage and backyard, which makes living more convenience. This is what makes the floor plan more desirable.