Sum of all Parts. What Your Home is Worth.

The major factors that effect a homes value are widely known. We've all heard the mantra "Location, location, location" because it is thought of as a universal rule when it comes to real estate value.

But there is more to it than that. In an interesting and sometimes surprising study from the National Center for Real Estate Research, we learn what specific home characteristics effect value the most:

Some highlights from the very long list:

• Each additional 1,000 square feet of living space increases value by 3.3%
• Each additional bedroom adds about 4% to price
• Central air conditioning adds about 12% to price
• Nine foot ceilings add about 6% to price
• A sitting area in the master bedroom increases price by 8%
• A fireplace has a strong positive effect on selling price, with each adding 12%
• The negative effects of age are most pronounced for houses 21-30 years old
• Each full bathroom adds 24% to price, partial baths ad about 15%
• Contemporary and Dutch style homes command the highest prices
• Above ground pools still suck, adding nothing to value

You can read the full study here [PDF]

Or, if terms like "Hedonic Regression Analysis" and other theoretical statistical models don't get your heart pumping, just go directly to the summary table.

The study is not perfect however. Notably left out:

• No data on how sunlight reflected by a Disney's gigantic, shiny, 274 million dollar stainless steel building effects value. [Guardian]

From the article:

• No data on the effect of neighbors that like to do household chores 'al fresco'.[WPXI - Pittsburgh]

From the article:

"Neighbors said they have complained for years while the man allegedly walked around his house naked'[...snip...]"he was seen, by neighbor sin his yard completely naked taking clothes off a clothesline on several occasions."

12/14/04 at 01:52 PM | Permalink