If you’ve ever wondered about property value in Atlanta, GA, look no further – in this post, we’ll discuss major factors affecting the resale value of your luxury home in this wonderful city.
When you work with local experts, you never have to guess Atlanta home prices. We can provide price estimates supported by data and luxury real estate expertise.
Location
They say real estate is all about location, location, location, and this can’t be truer for luxury properties. But when it comes to the high end of the housing market, there’s more to location than say, driving distance to the office or the airport.
But what exactly constitutes a desirable location? A good address will mean different things to different buyers, of course, but there are objective standards as well.
According to Inman, appraisers generally look at three main factors when assessing the value of a home:
- Quality/performance of local schools
- Business and career opportunities
- Proximity to shopping, dining, entertainment, and green spaces
Investopedia also offers the following insight on location and homes values:
Appearance, accessibility, amenities, and future plans for development have an impact on home values in any given community.
A property’s proximity to congested roadways and busy community centers can have a negative impact on resale value.
Acreage is more important than the quality of the structure itself because land increases in value over time.
Properties in areas with limited room for expansion tend to have more value than those in areas that still have plenty of room.
Comparable properties (“Comps”)
As the name suggests, comps are similar properties within the vicinity – homes that are the same age, condition, style, and square footage. Doing research on how much these homes sold for and how long they stayed on the market will give you a good idea of how to set the price of your home accurately.
Your agent will also look at recent comparable sales in the area to establish the difference between asking price and sales price.
This approach may be easier in subdivisions with model homes, though lot orientation, views, renovations, and upgrades can create variations in price.
Most Realtors will use software to analyze hundreds of comps for a given address and gather only the most relevant data when making a price estimate of your home.
And while this approach can be effective for mid-range and high-end homes, it might be a different story when it comes to ultra luxury homes – properties that cost tens of millions of dollars or more – since these properties are one-of-a-kind.
In case of ultra-luxury properties, or unique high-end properties, you will require the services of a luxury real estate expert.
Square footage and usable space
When estimating property values, the size of your living space, as well as any usable space in the form of “bonus rooms” that can be converted into functional rooms, will ultimately have an impact. Larger homes are generally seen as more desirable.
Home values are typically estimated in terms of price per square foot, in which the sales price is divided by the home’s square footage. Properties in desirable areas command a higher price per square foot.
Basements, attics, and garages typically do not count as usable space even if they can be converted into living spaces.
Age and overall condition
In most cases, newer homes appraise higher because the major components of the home, such as the roof, plumbing, electrical systems, appliance, and HVAC units are newer, more energy efficient, and less likely to have wear and tear.
For instance, if the roof comes with a 20-year warranty, the buyer will save thousands of dollars during the covered time period as opposed to an older roof that may need to be replaced in less than five or 10 years.
Moreover, most buyers prefer turnkey homes. That’s why they typically require inspections. They want the opportunity to ask for repairs before the sale gets finalized and avoid the cost of repairs upon moving in.
Provenance
When it comes to luxury real estate, there’s more to a home than upscale finishes, high-end appliances, and stunning views. The most coveted luxury homes have provenance, or some kind of mystique that makes them more desirable than other homes in the market.
This mystique may come in the form of previous ownership, architecture, and history surrounding the home. For instance, a home that was designed by a famous architect or previously occupied by a famous actor may attract more attention in the luxury market.
Reach out to Natalie Gregory & Co. to find learn about neighborhood and home features that affect property values. You can also contact us at 404.550.5113 and Natalie(dotted)Gregory(at)Compass(dotted)com. We can’t wait to hear from you!