{"id":289,"date":"2023-02-10T23:06:11","date_gmt":"2023-02-10T23:06:11","guid":{"rendered":"https:\/\/www.prudentialcal.com\/?p=289"},"modified":"2023-02-10T23:06:13","modified_gmt":"2023-02-10T23:06:13","slug":"factors-influencing-home-pricing","status":"publish","type":"post","link":"https:\/\/www.prudentialcal.com\/factors-influencing-home-pricing\/","title":{"rendered":"Factors Influencing Home Pricing"},"content":{"rendered":"\n<p>When buying or selling a property, there are many factors that influence the pricing. So how do you determine the best time to buy or sell? Of course, the property itself matters too; several factors influence how valuable the property is.&nbsp;<\/p>\n\n\n\n<p>So if you are looking to buy or sell, read on to learn how home pricing is affected from real estate experts.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.prudentialcal.com\/factors-influencing-home-pricing\/#The_Pandemic\" >The Pandemic<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.prudentialcal.com\/factors-influencing-home-pricing\/#Supply_and_Demand\" >Supply and Demand<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.prudentialcal.com\/factors-influencing-home-pricing\/#Unique_Features\" >Unique Features<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.prudentialcal.com\/factors-influencing-home-pricing\/#Location_Value_of_Properties_in_the_Neighborhood\" >Location, Value of Properties in the Neighborhood<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.prudentialcal.com\/factors-influencing-home-pricing\/#And_Again-_Location\" >And Again- Location!<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.prudentialcal.com\/factors-influencing-home-pricing\/#Size_and_Space\" >Size and Space<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Pandemic\"><\/span><strong>The Pandemic<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>\u201cThe real estate market is extremely hot at the moment, and many factors are influencing the situation. Interest rates are still extremely low, which typically stimulates the demand. Although the pandemic has affected the employment of many, others - those who have been working throughout the pandemic, for example- have also increased their savings thanks in part to the government assistance programs and may have more money saved for a down payment. Among them, some fear that the interest rates may increase in the future to fight back inflation and feel a sense of urgency to buy.&nbsp;<\/p>\n\n\n\n<p>\u201cThe pandemic has also affected how people live and think about homeownership. More people than ever are working from home and are likely to do so, at least part-time, for the foreseeable future. The place where they live is becoming more independent from the place where they work. They may also have found out that their current housing situation does not fit their needs (they want more space to set up a home office, access to an outdoor area, etc.) People who were already on the verge of moving are ready to do so. Many were previously renters in big cities and are moving for more affordable locations in the suburbs or secondary cities.&nbsp;<\/p>\n\n\n\n<p>\u201cOn the other hand, some homeowners are hesitating to put their house on the market. The future is still uncertain and they do not want to deal with the current high prices to purchase a new property. The bottom line is that inventory is limited, demand is high, and interest rates are low, leading to a perfect storm driving up property prices.\u201d&nbsp;<\/p>\n\n\n\n<p><strong>Omer Reiner, licensed Realtor &amp; president of <\/strong><a href=\"http:\/\/www.floridacashhomebuyers.com\"><strong>FL Cash Home Buyers, LLC<\/strong><\/a><strong>; a real estate investment company<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Supply_and_Demand\"><\/span><strong>Supply and Demand<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>\u201cThe pricing of real estate is dependent upon many factors, but they are all related to the basic principle of supply and demand. Interest rates have hit historical lows in the past year. The COVID pandemic has caused many people to want to move out of highly populated areas to have their own space. Also, with so many working from home, more people are looking to move outside of large urban areas since they no longer need to commute to the office.&nbsp;<\/p>\n\n\n\n<p>\u201cAll of these factors have increased demand in many markets while supply chain issues have caused building materials to skyrocket in price making it more difficult and expensive to increase the supply through new builds and renovations. With demand increasing at a faster pace than supply can keep up with, home prices have increased significantly.\u201d<\/p>\n\n\n\n<p><strong>Erik Wright, Owner of <\/strong><a href=\"http:\/\/www.newhorizonhomebuyers.com\/\"><strong>New Horizon Home Buyers<\/strong><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Unique_Features\"><\/span><strong>Unique Features<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>\u201cOne of the most vital factors in pricing a home is knowing what the comparables are and identifying any unique features that the home has that would command a higher price. Really diving into the data of the other homes in the area is key because certain homes may have gotten a higher price due to a unique offering. Other factors include identifying the style of the home, knowing what is appealing and wanted at the time, i.e., home offices making a comeback, and the home seller's personal situation, i.e., having to sell fast will mean a more aggressive listing price.\u201d<\/p>\n\n\n\n<p><strong>Jason Gelios, Top-producing<\/strong><a href=\"http:\/\/www.itsallabouttherealestate.com\/\"><strong> REALTOR\u00ae with Community Choice Realty<\/strong><\/a><strong>, Author of the real estate book \u2018Think like a REALTOR\u00ae\u2019 and the creator of The AskJasonGelios Real Estate Show.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Location_Value_of_Properties_in_the_Neighborhood\"><\/span><strong>Location, Value of Properties in the Neighborhood<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>\u201cThere are some key factors that impact the cost of real estate. First is the location. Things like the local school district, distance from shopping\/grocery stores, and job opportunities impact the value of a property. Second, the value of properties in your neighborhood can influence the cost of your home. Third, your home's size and usable living space can impact its value (the bigger it is, the more valuable your home is and vice versa). Your home's upgrades and age will play a role in determining its value (the newer it is and the more upgrades it has, the more it will be worth).&nbsp;<\/p>\n\n\n\n<p>\u201cAdditionally, the economy and interest rates will also play a role in determining the value of your home. While you can't control most of these factors, you can make upgrades to your home to increase its value. Keep in mind though that any upgrades you make will need to be able to be supported by the local market in order to be worthwhile. For example, bathroom and kitchen upgrades tend to offer the most bang for your buck.\u201d<\/p>\n\n\n\n<p><strong>Jennifer Ward, Founder of the Terre Haute, IN-based company, <\/strong><a href=\"http:\/\/www.housebuyingmamas.com\"><strong>House Buying Mamas<\/strong><\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"And_Again-_Location\"><\/span>And Again- Location!<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>\u201cUndoubtedly, location is one of the highest influential factors when it comes to home pricing. It is the first thing buyers will be looking into. No family is going to settle for a shady alley and hence, that makes the sunny neighborhoods a goldmine for home sellers. A healthy residential area will always fetch higher prices, understandably.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Size_and_Space\"><\/span><strong>Size and Space<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>\u201cYet again, the calculation of price will be based on the size of the house which is an understood factor. The bigger the house, the higher will be its prices. Prices are determined based on per square foot.\u201d&nbsp;<\/p>\n\n\n\n<p><strong>Andrea Boyd, Community Director <\/strong><a href=\"https:\/\/tailoredspace.com\/\"><strong>Tailored Space<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When buying or selling a property, there are many factors that influence the pricing. So how do you determine the best time to buy or sell? 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