Understanding Home Value with Erenay DesignBuild
As a person who studied architecture and has actively been in the design and construction field for 25 years, I would like to share my thoughts and approach toward understanding and judging home values.
This topic came to mind as construction materials and costs have increased substantially in recent months. Some construction material prices have doubled and tripled during the pandemic. This does not mean the overall construction cost has increased with the same proportion.
The most commonly used method to estimate the value of a home is to look at the square footage sale price for that area; however, the house market value might be misleading since homes are not products like cars or other factory manufactured products.
Houses are functional sculptures that are designed by architects or designers and engineers.
Involvement of engineers depending on type of structure; they make an architect’s dreams a reality. Yes, cost is a big factor when they are designed but as a result, most are designed based on client requests and needs. Therefore, they are really tailored for its owner.
The value of a home can not only be considered by the square footage as posted in ads, or in flyers.
Let me share a list of items that help you should pay attention when you look at the house:
- The layout should have efficient usage of common spaces such as entrance, hallways, storage spaces. Keep in mind that these areas are added in the overall square footage.
- The look of the house should please you each time you look at it. If you would like to make an exterior and interior change of the existing look, make sure to find out the estimated cost to make that change.
- Pay attention to the shape and size of the lot which plays a big role for potential future additions.
- Material choices:
- Rough construction materials like wood studs, plywood, stucco, concrete do not change the construction cost much from one house to another unless the ceiling heights are different and bigger spans exist due to larger rooms.
- The materials used for the façade can affect overall cost and the value of the house.
- Bathrooms and kitchens can get old or outdated throughout the years. However, the exterior look of the home represents an era and it is better not to change it in order to be faithful to its original look – similar to a classic car.
- Finish materials like tiles, flooring material, faucets, shower heads, doors and window prices can vary a wide range depending on the brand name and model. If you know someone doing business in this market, he/she is the right person to go shopping with for your house.
- Potential growth:
- When looking at your home, ask yourself what potential it can offer.
- If you would like to make an addition or add a separate dwelling unit to the property, find out whether or not this is possible. If it is possible, how big can it be? The size of the addition not only depends on the size of the lot, but its shape and the local codes will answer this very important answer.
- Valuing a house not only depends on the existing square footage, it also matters on how much potential is in your home. Contact the city planning department and get help from a design professional.
Please remember that at the end of the day, most of us are emotional buyers. If you do not consider every aspect, you may not get as good of a deal as you think and make sure to visit the house at different times of the day to see the sun’s effect on lighting.
