Wednesday, September 30, 2020

4 Surprising Features That May Increase How Much Your Home Is Worth

Thousands of data points correlate with home values and sale prices, many which are obvious (like the condition of the home) and some features that aren’t obvious. 

Here are several surprising features which have the power to affect ethe existing value of your home or the price someone is willing to pay for it, based on factual data.

1.    Proximity to Starbucks

A surprising feature which may raise the value of your home is your proximity to the nearest Starbucks. A 2015 Zillow report found that, between 1997 and 2014, homes within a quarter-mile of a Starbucks increased in value by 96%, compared to 65% of all U.S homes. This information was based on a comparison of Zillow Home Value Index Data with a database of Starbucks locations. 

To evaluate if this effect is isolated to Starbucks, the Zillow research team looked into another coffee hot spot (one with particular pull on the East Coast): Dunkin’ Donuts.

The data showed that homes near Dunkin’ Donuts locations appreciated 80 percent, on average, during the same 17-year period — not quite as high as homes near a Starbucks, but still significantly above the 65 percent increase in value for all U.S. homes.

2.    Blue kitchens and blue bathrooms

Curb appeal is definitely important to prospective home buyers, and what’s inside counts too, especially the colors you choose to paint the rooms. 

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 is also a well-liked bathroom shade. The same analysis found that homes with pale blue to soft periwinkle-blue bathrooms sold for $5,440 more.

Walls painted in cool neutrals, like blue or gray, can signal that the home is well cared for or has other desirable features.

3.    Trendy/Modern Features

Zillow listings mentioning trendy features, such as barn doors and farmhouse sinks, tend to sell faster and for a higher premium. This information is according to a 2016 Zillow analysis of descriptions of more than 2 million homes sold across the country. 

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, listings touting “farmhouse sink” led to a nearly 8 percent sales premium.

4.    City Proximity 

 If you are lucky enough to own a home in a major metropolitan area, you’re most likely sitting on a significant (and rapidly appreciating) financial asset. For example, home values in the New York, NY, metro area are worth $2.6 trillion. The average urban home is now worth 35 percent more than the average suburban home. Since 2012, the median home value in urban areas has increased by 54 percent, while the median home value in suburban areas is up just 38 percent.