When you are looking at homes for sale, you might be surprised to find a very large home for much less than you expected. You may also find homes that are not in the best of shape, but are being sold at an incredibly high price. So what affects the price of homes for sale? There are any number of factors, but the following factors are the ones that may help you decide which homes are worth your time to view and which ones are not.
Extremely Low Priced Homes
The neighborhood is a big factor in the price of a home. If most of the neighborhood surrounding a house is in disrepair or it is considered a high-risk/dangerous neighborhood, then the cost of property there will be lower than expected. If you wonder why a property can be sold for so little, dig into police reports and statistics in that neighborhood to see if this might be the reason why. Otherwise, some other factor may cause the housing prices to dip.
The House Needs Work
It used to be that people would buy a home and live in it most of their lives (if not die in it as well). Some older generations still do this, and as people get older, they stop having the monetary resources and physical strength to keep up the home or update it. For that reason, a house on the market might be reduced in value or price in order that it may be sold quickly.
The Surrounding Properties Need Work
Sometimes it is neither the neighborhood nor the house itself that is in disrepair. Property values can be brought down by what the neighbors do not do with their homes and yards. While the neighborhood may be deemed safe enough to walk down the street, unkempt homes can still affect a well-kept house on the same block. You may need to see the house in person to see what the surrounding houses and properties look like.
Extremely High Prices for the Area
Proximity to Parks, Waterfront or Wealthy Residential Areas
If you find a really small-to-modest home but the price makes your eyes bug out, the price may be affected by the house's proximity to parks, waterfront and/or wealthy residential areas. These little houses in the midst of modern mansions offer picturesque views and access to points of interest. As such, their views and access to activities come with a price tag.
The House is Actually a Historic Landmark
Not all historic homes become tourist attractions. In fact, many historic landmarks are only marked with a plaque outside while the owners dwell within. Because of a home's official historic status, the price of the house is significantly higher than the prices of the homes for sale around it.