When you own a home, seeing its value increase over time is the ultimate goal. But what exactly drives property values up? Whether you’re a first-time homeowner or have been in the game for a while, understanding the factors that make your home gain value can help you make smart decisions to maximize your investment.
You’ve probably heard it before—location is everything in real estate. The neighborhood, proximity to good schools, shopping, parks, and other amenities can significantly boost your home’s value. Homes in desirable locations tend to appreciate faster. If you’re near new infrastructure projects or trendy areas, that’s a bonus, too. The walkability and access to transportation can also add to the appeal.
Like any market, real estate is driven by supply and demand. If there are more buyers than available homes in your area, the value of your home may rise. In contrast, if there are too many homes for sale and fewer buyers, the price may stagnate or even drop. Keeping an eye on local market trends can give you a sense of how supply and demand might affect your home’s value.
Real estate comparisons, or "comps," are a big factor in determining your home's value. Comps are recent sales of similar homes in your area. These prices are used as a benchmark for determining how much your home is worth. If the houses around you are selling at higher prices, it’s a good sign your home’s value is rising as well.
The bigger the home, the higher the value, right? Well, not exactly. The overall square footage matters, but so does the usable space. A well-laid-out home with functional living areas will be more valuable than a home with a lot of unusable space. Homes with more bedrooms and bathrooms also tend to attract higher prices.
The age and condition of your home can play a major role in its value. While older homes can have charm and character, buyers may be wary of potential maintenance issues. Keeping your home in good condition—whether it’s through regular maintenance or larger projects like replacing the roof or upgrading the HVAC system—will help it retain and gain value over time.
Home improvements are a fantastic way to boost your property’s value, especially if you focus on high-ROI upgrades. Think kitchen remodels, bathroom updates, or adding energy-efficient appliances. Curb appeal also counts—fresh landscaping or a new front door can increase your home’s attractiveness and, in turn, its value.
Sometimes, what’s going on around your home affects its value. Zoning regulations, like new developments in your area, can make your property more or less attractive. Being aware of potential zoning changes can help you stay ahead of the curve.
The cost of borrowing money to buy a home directly affects its value. When interest rates are low, more people can afford to buy homes, which increases demand and, therefore, home prices. On the flip side, when interest rates rise, it can slow the housing market.
A booming economy can raise property values, as more people have the financial stability to buy homes. Economic growth generally correlates with wage increases, low unemployment, and greater consumer confidence—all of which contribute to a strong housing market.
Believe it or not, local and national politics can also play a role in home values. Tax policies, housing regulations, and government incentives can either help or hurt the market. Natural disasters, unfortunately, can lower the value of homes, especially if your area is prone to floods, earthquakes, or wildfires.
Lastly, generational preferences can shape the market. As younger generations enter the market, their preferences in home size, style, and location can shift demand. If your home fits the bill, you could see its value rise as more buyers come knocking.
When you understand what factors drive your home’s value, you’re better positioned to make decisions that could increase your investment’s worth.
One way to capitalize on rising home values is by refinancing. If your home has appreciated since you bought it, refinancing can help you tap into that equity, lower your interest rate, or reduce your monthly payment.
Want to learn more about how your home’s value impacts your refinancing options? Contact your local mortgage professional to get personalized advice and explore the best options for you!
This licensee is performing acts for which a real estate and mortgage license or consumer loan license is required. C2 Financial Corporation is licensed by the California Bureau of Real Estate, Broker # 01821025; Washington Office Department of Financial Institutions, DFI# MB-135622; NMLS# 135622 Loan approval is not guaranteed and is subject to lender review of information. All loan approvals are conditional and all conditions must be met by borrower. Loan is only approved when lender has issued approval in writing and is subject to the Lender conditions. Specified rates may not be available for all borrowers. Rate subject to change with market conditions. C2 Financial Corporation is an Equal Opportunity Mortgage Broker/Lender. The services referred to herein are not available to persons located outside the state of California and Washington.
As a broker, C2 Financial Corporation is NOT approved by the FHA or HUD, but C2 Financial Corporation is allowed to originate FHA loans based on their relationships with FHA approved lenders.
Corporate Website:
www.c2financialcorp.com
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304 Vista Del Mar, Suite E Redondo Beach, CA 90277
Office Phone: (310) 890-6459
Michael Mardesich 
Broker (310) 890-6459 cell mike.mardesich@gmail.com BRE#: 01053119 NMLS#: 242591
Frank Kostrencich Senior Loan Officer
(310) 344-8910 Cell fmkost@gmail.com BRE#: 01024274 NMLS#: 238594
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