Learn About the Variables that Influence Kansas City Real Estate
What’s interesting about the real estate market is that home values are highly subjective. Send three different appraisers to assess a single property, you’ll likely get back three different property values. Like beauty, value is in the eye of the beholder.
When evaluating Kansas City real estate, the age-old adage “location, location, location” holds true. The geographical context of a property has an undeniable impact on its market value, but it’s just one piece of the puzzle. Several factors interplay to determine a home’s worth, making the real estate market an intricate and ever-evolving landscape.
In this blog, we’ll explore the main factors that influence property values. Some of them are static, while others change over time. After exploring those, we’ll provide some valuable information on lesser-known ways of selling Kansas City real estate.
How Location Plays into Property Value
For many aspiring homebuyers, where the home is located is just as important as the home itself. As a rule of thumb, the more in demand the location, the more you can expect to pay. The following breaks down the individual elements that pertain to location and property value.
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Neighborhood
The neighborhood a home is situated in significantly influences its value. Desirable neighborhoods with good schools, low crime rates, high curb appeal, and within proximity to amenities tend to command higher prices. By comparison, unkempt neighborhoods with high crime rates are viewed as higher risk, which decreases the value of homes.
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Amenities and services
The availability of parks, shopping centers, sports stadiums, dining options, and cultural attractions in the vicinity can boost a property’s value. Homes in remote areas or areas with few amenities tend to skew lower.
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Safety and crime rate
Safety and security are a primary concern for most homebuyers. Neighborhoods with low crime rates and a responsive police presence are more attractive to many buyers, and therefore, result in increased property values.
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School quality
Homes within top-performing school districts are often more valuable, even for buyers without children. Good schools are a sign of a strong community and prosperity.
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Scenic views and natural beauty
Properties with scenic views of natural beauty, such as parks, lakes, or mountains, tend to have higher values. For example, any home sitting lakeside will fetch a much higher price compared to the one sitting behind it with an obscured view of the water.
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Historical significance
Homes in historic districts or areas with unique architecture may hold more value due to their historical significance. Although many homebuyers may shy away from older homes, there is a niche market willing to pay to own a piece of history.
Other Factors That Influence Property Value
Location greatly influences home values, but there are several other factors at play, too. They include:
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Home size and condition
The size, layout, and condition of the home plays a significant role in its value. Updated kitchens, bathrooms, and overall maintenance can increase a property’s worth. This is why many folks invest in repairs and renovations before listing their Kansas City real estate.
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Lot size
Larger lots tend to directly correlate with higher values, especially in areas where outdoor space is at a premium. For example, certain homes in the Plaza area have extremely high values because of the lot size they sit on.
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Age
Why do brand-new homes cost so much? Because brand-new means the owner won’t inherit any problems. Brand-new everything is an attractive selling point. Older properties, on the other hand, may have age-related issues such as cracks in the foundation or an outdated HVAC system in need of replacement.
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Market conditions
The state of the real estate market, such as supply and demand, interest rates, and economic conditions, can influence a property’s value. Within the past couple of years, we’ve seen interest rates dip to about 3% and then steadily rise above 7% after the Fed began their increases to cool off inflation. As the saying goes, “Timing is everything.”
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Comparables (Comps)
Real estate professionals use recent sales of similar properties in the area, known as “comps,” to determine a property’s fair market value. For example, if your home is a three-bedroom/three-bathroom property that’s 2,500 square feet, the value of your home will be directly influenced by other 3 bed/3 bath properties of a similar size in the neighborhood.
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Upgrades and Renovations
Homes with modern amenities, energy-efficient upgrades, or renovations can command higher prices. Bathroom, kitchen, and basement remodels all have very high return on investment (ROI). Additions like a deck, patio, or anything that adds additional square footage typically yield high returns as well.
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Maintenance and curb appeal
Well-maintained properties with attractive landscaping and curb appeal are more valuable to buyers. If you’re looking for a way to increase your property value, investing in professional landscaping is a surefire way to do it.
Applying Knowledge of the Real Estate Market When Selling Your Home
While location undoubtedly reigns as the most prominent factor influencing residential real estate value, these other elements intertwine to create a comprehensive picture. When evaluating property values, both buyers and sellers should consider all the variables to gain a holistic understanding of Kansas City real estate. Keeping that in mind, homeowners who are considering selling now have the necessary knowledge of what enables a home to fetch a higher price. Although you have no control over your location or market conditions, you do have control over your home’s condition and curb appeal. By investing in the variables you can control, you position yourself to be more competitive on the seller’s market.
However, we understand that not all homeowners have the time or the investment capital to put into renovations, repairs, and landscaping. In fact, some people want to sell their home as fast as possible in as-is condition. If that sounds like you, Blue Clover Investments can help.
Our process is simple:
- Call us and provide a little information about your property.
- We find out your goals for selling the home, including your preferred turnaround time.
- We will provide you with multiple options for selling, including a quick cash close.
The consultation is free, takes but a few minutes, and sheds new light on how Kansas City real estate works without a real estate agent acting as a middleman. This also gives you the opportunity to ask any pressing questions you may have about the market or how homes are valued.
Call us today at (816) 237-5959 or email us using our contact form.
