When you’re browsing homes for sale in Windsor, CT, you may wonder how exactly people determine the value of a property. What makes a house worth $125,000 while the one next door is valued at $175,000?
At its core, property value is how much people are willing to pay for a piece of property. However, that number varies from person to person. Hence, a property value tries to capture the average amount based on a variety of factors. Some of the factors that determine property value include:
Historical Sale Prices: By looking at how much a house sold for in the past, you can estimate what it will be worth the next time it is sold.
Location: Homes for sale in more desirable neighborhoods typically sell for more than homes in less desirable areas of town.
Size: Bigger houses tend to be worth more, but the general appeal of the home is just as important as the size.
Age and Condition: Newer homes usually sell for more money because they’ll likely need less maintenance; however, a well-maintained older home can also value highly if it has historic appeal.
Current Market: When demand is high, and supply is low, property values rise — and vice versa.