5 Factors that Affect Utah Real Estate Property Values
Maybe you’re still in the process of shopping for a house. Perhaps you’ve already chosen one, but you’re not sure whether it’s worth it. Whatever your case, here are five of the factors that affect house prices.
The age, size, and amenities of a house can affect its value. For example, you cannot compare a house that was built in 1950 to a house built in 2010; the value of the former may have been adjusted for inflation, among others. Likewise, the size of the house is usually directly proportional to its price. A residential structure may also have a higher value if there are implements such as swimming pools, large gardens, and so on.
Foreclosure or Short sales
Houses subject to these usually have lower values compared to new houses. If a house is foreclosed, the remaining balance on the mortgage is typically the selling price, and it may be lower depending on court rulings regarding the foreclosed property. Similarly, in a short sale, the house is sold with a price equivalent to a value lower than the liens on the house; this depends on the agreement between the owner and the creditors.
When interest rates fall, mortgages are easier to obtain, thereby pushing house prices up and vice versa. Meanwhile, if the economy is healthier, people generally have better purchasing power, and the real estate industry, in turn, sees a rise in prices. Be alert for news about Federal Reserve actions and major events such as oil price hikes and elections; they also affect house values.
If you browse the Internet for house prices, you may be confused by the seemingly conflicting values presented. For instance, the data for Sandy Utah real estate may say that the average listing price is $392,337, while the median sales price is $207,150. The better estimate is the latter, since median prices are not affected by the lowest or highest actual prices. Characteristics specific to Sandy, such as the ambiance of the neighborhood, can also affect house values in the area.
Number of buyers
Houses also follow the rules of supply and demand. For example, if there are more buyers of Salt Lake real estate than the number of properties up for sale in the area, prices may spike, and the opposite is also true. If you want to pay less, look for a home with almost no buyers, though you may have to wonder why it has few buyers in the first place.
Good research on factors that affect Utah real estate prices will out you in good stead. For more information, log on to realestate.yahoo.com.
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