Factors that Affect Home Prices in Florida
Most homeowners take pride in their home and are emotionally invested in it. Whether it be the amount of money and energy spent in its repair or the many memories that a home holds, it's extremely difficult for any homeowner to remain objective when it comes to pricing. This is why it's important to work with a local real estate agent who understands the market. Agents will review many different aspects of a home and the market to determine pricing. Here are a few factors that affect home prices in Florida.
Home Style & Size
Naturally, the features of a home play a primary role in its pricing. This includes the home style, square footage, bedrooms, bathrooms, etc. Real estate agents will pull statistics on recent sales of similar homes in the neighborhood and then make adjustments for minor differences in size. If you have a 1500 square foot home, it would not be compared to a 3000 square foot home, because the difference is too great. Those two homes occupy a different pricing bracket. Likewise, if you have a ranch, it would not be compared to homes with 2 living levels. Pricing is more accurate when your home is compared to others with a similar style and size.
Home Features & Amenities
Specific features and amenities within your home also contribute to its pricing. Real estate agents and appraisers adjust home values for things such as:
- Air Conditioning
- In-ground Pools
- Screened Outdoor Space
- Upgraded Kitchens & Baths
- Kitchen Condition/Upgrades/Features
- Bathroom Condition/Upgrades/Features
Community & Location
The location of a property is one of the most important factors that affect home prices in Florida. This is why you often hear that real estate is about location, location, location. Location breaks down into two things: the immediate community and the general area.
Florida contains many different established communities. Many come with amenities such as a clubhouse, pool, fitness center, security and other services. These are often desirable to buyers and will therefore improve the value of your home. Agents try to select comparable homes in the same complex to avoid needing to adjust pricing for community amenities separately.
The general area of the home is also important. How close is your home to major highways, grocery stores, restaurants, hospitals, recreational facilities, etc.? Being close to certain amenities can improve home values, but being too close can have a negative effect.
Another of the main factors that affect home prices in Florida is the real estate market. Your home would be priced different based on whether it's a seller's market or buyer's market, average interest rates, the amount of available inventory, etc. Your real estate agent can provide this information to you and explain how it relates to pricing.
Summary of Factors that Affect Home Prices in Florida
By understanding the many factors that affect home prices in Florida, you can accurately price your home for a quick sale. Although you may have certain impressions about what your home is worth, remember that your emotional connection to the home may influence that. Rely on the solid figures and facts from your real estate agent to gain an objective understanding of your home's value and what pricing is appropriate for the current market. For a free market valuation of your Florida home, give our team a call!