Here’s how we determine how much a home’s value will appreciate.
People often ask me how much their home’s value will appreciate. That’s a hard question to answer.
If you’re an investor, we can look at the timeline of when you plan to make renovations and sell the property, but most people are buying properties with the intention of living there for several years. So how do we determine how much your house will appreciate in those circumstances?
We actually look at a few factors:
1. Historical trends. We don’t have a crystal ball, but looking at the past could give us an idea of what to expect in the future.
2. Inventory. We can also look at the available inventory at a given time to determine whether it’s a buyer’s or a seller’s market.
3. Mortgage rates. Mortgage rates undoubtedly have an impact on home buying, and that activity will have a bearing on how much your home will appreciate.
4. New developments will affect home appreciation.
5. The desirability of the neighborhood. A home’s location and school districts will determine a higher or lower rate of appreciation.
If you’d like further information about home appreciation, please feel free to contact me. I’d be happy to talk to you.