Home Features that Affect Alaskan Real Estate Values
It's safe to say that all Alaskan homeowners aim for a healthy home value, one that doesn't take a hit when they decide to renovate. You may think you have your home's best interest in mind when bringing in new appliances, but their effect on the resale value may not be what you had hoped. Especially if you're planning to sell in the near future, be mindful of the factors that can influence the value of a home in Fairbanks, Anchorage, Eagle River or Palmer.
Consider these tips before you make any big changes to your Alaskan home this year:
Layout and Size
Despite what you may think about local real estate, larger homes are not necessarily what homebuyers want. With a larger home comes more upkeep, time and maintenance costs. Layout is a much more important factor when it comes to determining home value. For instance, an open-concept home in Fairbanks or Anchorage is likely more appealing than one with more square footage.
The number of bedrooms is also a major influence on home value— it's important to take this into consideration before you turn one larger bedroom into two this year. While more bedrooms might be on a homebuyer wish list, it's the size of the bedrooms that is the determining factor. Homeowners may think putting up a wall and dividing one room into two is a great idea, but as Zillow's chief economist advises, "Adding a bedroom will take away value, fewer but larger bedrooms tend to boost value."
Condition and Age
In Alaskan homebuyer eyes, older homes and newer homes are sought-after more than those that fall in between. As a home gets older, unless in impeccable condition, it tends to lose value. "Then there's a U-shape where, at some point, homes become so old that they have historical significance," the economist suggests. "A home that's built in 1910 is probably more valuable than one built in 1970."
The condition of an Alaskan home is one factor that can bring sellers a higher resale value. A home that is well-kept and ready for new owners to move in will sell for thousands more than one that needs a decent amount of work.
It's crucial to consult your Alaskan real estate agent to determine which upgrades will price your home out of the area. If you do too much updating, your home could become "over-improved" and actually take a hit on property value. It also might be beneficial to visit other homes in the area to see what is common for Fairbanks, Anchorage, Eagle River or Palmer real estate and base your renovations upon what you find. Your best bet is to leave it to the pros! Your local real estate agent will pull comparable properties from around the area to best determine the value of your home.
If you're preparing to sell your Alaskan home this year, Madden Real Estate can help! From marketing the property with an effective price to our Guaranteed Sales Program, we are here to work for you. We'll walk you through every step of the process to ensure you get the best price and closing terms. Contact us today to discuss what we can do!