Sept. 6, 2018
To understand how much your home is worth, it's important to understand the variety of factors that go into assessing the value, both existing (assessed and appraised) value, as well as potential real value on the market.
There are thousands of data points extrapolated to determine home values and sale prices — some of which are obvious (like the condition of the home), and some that aren't so obvious.
Check out these 3 surprising things that can affect either the existing value of your home or the price someone is willing to pay for it, all based on data.
1. HOW CLOSE YOU ARE TO A STARBUCKS
Believe it or not, Harvard Business School actually did a study on this. Having a Starbucks open near a neighborhood could increase nearby home values. They were really studying gentrification of neighborhoods using Yelp data, but discovered the "Starbucks effect" during their research.
"Harvard economics professor Edward Glaeser says he believes the home price rises are not due to the actual Starbucks opening but may be more of an indicator of affluent customers in the area. 'The presence of a Starbucks is far less important than whether the community has people who consume Starbucks,' Glaeser notes in the paper. Consequently, we think that this variable is likely to be a proxy for gentrification itself. … The most natural hypothesis to us is that restaurants respond to exogenous changes in neighborhood composition, not that restaurant availability is driving neighborhood change.”
Other home value data showed that homes within a quarter-mile of a Starbucks increased in value by 96%, on average, compared with 65% for all U.S. homes between 1997 and 2014.
If you're not near a Starbucks, don't worry. The same data showed that homes near Dunkin' Donuts during that same time period appreciated 80%...not as much as Starbucks, but well above the average 65%.
2. BLUE KITCHENS & BATHROOMS
Of course, all-around curb appeal plays a huge role in the sale of your home, but surprisingly, the colors you've painted rooms can make a big difference in the sales price of your home. Especially the color of kitchens and bathrooms.
"According to Zillow's 2017 Paint Color Analysis, which examined more than 32,000 photos from sold homes around the country, homes with blue kitchens sold for a $1,809 premium, compared to similar homes with white kitchens."
Blue was also a good financial choice for bathrooms as well. The same paint color analysis showed that homes with light pale blue bathrooms sold on average for $5,440 more money than other homes. What??
Notable is the fact that blue seems to transcend some of the color trends and remains steady as the favorite color of both men and women.
It is also the color that most evokes "Truth."
Trust: Most chose the color blue (34%), followed by white (21%) and green (11%)
Security: Blue came out on top (28%), followed by black (16%) and green (12%)
High Quality: Black was the clear winner (43%), then blue (20%)
Reliability: Blue was the top choice (43%), followed by black (24%)
Additionally, walls that are painted in neutral colors signal that a home is well cared for.
FYI: Trend forecasting service WGSN has revealed that a pastel shade of green, coined "neo mint", will dominate the worlds of fashion and interiors in 2020.
3. TRENDY FEATURES
Homes that feature things like "shiplap," "barn doors," and "farmhouse sinks" sell faster and for a premium...then you Joanna Gaines.
As an example of this, data analysis showed that listings with "barn door" in the description sold for 13.4 percent more than expected, and 57 days faster than comparable homes without the keyword.
Meanwhile, "farmhouse sink" led to a nearly 8-percent sales premium. Something to keep in mind is that these features don't seem to be increasing the value of the home off-market, but the popularity of the trends at the time of sale DEFINITELY make a difference in the property's popularity.