Allodium

Most people think a home’s value comes down to one thing: the price their neighbor sold for. That matters—but it’s only part of the story. Your home’s value is shaped by a mix of market forces, location details, and features that buyers care about more than you might expect.

Here’s what really moves the number up or down.

1. Location (And Not Just the City)

You’ve heard “location, location, location,” but it goes deeper than the city name.

Buyers look closely at:

The specific neighborhood
School zones
Walkability and transit
Noise, traffic, and nearby construction
Distance to jobs, parks, and shops

Two homes a few blocks apart can have very different values because buyers feel different about living there.

2. Recent Sales (But Only the Right Ones)

Comparable sales—often called “comps”—are nearby homes that sold recently. These anchor your home’s value, but only when they truly match.

The best comps are:

Sold in the last 30–90 days
Similar size and layout
Similar condition and age
On the same side of major roads or boundaries

Old sales or mismatched homes can distort expectations fast.

3. Supply and Demand Right Now

Your home’s value changes with the market, even if the house stays the same.

When:

Few homes are for sale → prices rise
Many homes are sitting → prices soften

Interest rates, seasonality, and buyer confidence all affect how much competition exists at a given moment.

4. Size, Layout, and Usable Space

Square footage matters, but layout often matters more.

Buyers pay attention to:

Number of bedrooms and bathrooms
Functional layouts (not just big rooms)
Finished basements or usable attics
Storage, closets, and parking

A smaller home that feels practical can outprice a larger one that feels awkward.

5. Condition and Age (Buyers Notice More Than You Think)

Deferred maintenance quietly lowers value.

Things that raise red flags:

Old roofs or windows
Outdated electrical or plumbing
Worn flooring and tired kitchens
Signs of water damage

Even if buyers plan to renovate, they discount the price to cover risk and hassle.

6. Renovations That Actually Pay Off

Not all upgrades add value.

Generally helpful:

Kitchens and bathrooms
Energy-efficient upgrades
Fresh paint and flooring
Clean, neutral finishes

Less reliable:

Highly personal design choices
Overbuilding compared to nearby homes
Expensive features buyers don’t expect in the area

Value comes from alignment with buyer expectations, not just cost.

7. Curb Appeal and First Impressions

Buyers decide how they feel about a home in seconds.

Small details matter:

Landscaping and lighting
Front door and entryway
Exterior condition
Cleanliness and smell

A strong first impression can raise perceived value before anyone checks the numbers.

8. Psychology and Timing

Value isn’t only math—it’s emotion.

Multiple offers, fear of missing out, or a “perfect fit” feeling can push prices higher. The opposite is also true when listings sit too long and buyers start asking what’s wrong.

The Bottom Line

Your home’s value is not a single number pulled from a website. It’s the result of:

Where it is
How it compares
What buyers want right now
How it feels to walk through

Understanding these factors helps you price realistically, negotiate confidently, and make smarter decisions—whether you’re selling, refinancing, or just keeping an eye on your equity.