Add On’s Don’t Always Add Up in Denver Real Estate
Add Ons Don’t Always Add Up
The National Association of REALTORS® released a report that explains “The Value of Housing Characteristics.” This release can be utilized as an effective resource for consumers when trying to determine how different attributes of a house affect its value when selling, buying or refinancing a home. Many times I often assist home sellers in the pricing of their home, determining which attributes add value or detract from the home’s value. The conclusions from this study are intended to be used as a reference guide in determining how different attributes of a home affect its value.
What Increases Value:
• Larger homes and homes with more bedrooms and bathrooms sell for more above all other features—physical, location and quality.
• Each additional 1,000 square feet of living space increases selling price by about 3.3 percent:
• Each additional bedroom adds about 4 percent to price;
• Central air conditioning adds about 1.2 percent to price;
• Nine foot ceilings add about 6 percent to price;
• A basement increases value by 9 percent;
• Fireplaces have a strong, positive effect on selling price, with each fireplace adding about 1.2 percent;
• A garage adds about 3 percent to the selling price;
• An in-ground swimming pool adds about 8 percent to value, in warm climates, while an above ground pool adds no value;
• Close proximity to golf adds 8 percent to the selling price.
What Decreases Value
• A laundry in the basement decreases value by 2 percent;
• A home with no laundry area decreases the value by 13 percent:
• The age of a home decreases the value of a home ranging from .1 percent (6-10 year) to as high as 7.5 percent (21-30 years);
• Flat roofs decreases the value of a home by 9.5 percent;
• A home that uses electricty to heat the water or the home heating source decreases the value of a home by an average of 4 percent.
This summary report of the country, was compiled and reprinted with permission from the National Association on REALTORS®
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