The Principle of Conformity Influences Your Home’s Value

The Principle of Conformity has to do with how your home compares with other homes in the area and on the block. If your home is built at the same time as the rest of the homes on your block, and with the same specifications and guidelines, it’s probably similar to other homes in your area. On the other hand, if your home varies significantly from other nearby homes, those differences can cost you. 

Size matters.

Size matters. You don’t want your home to be significantly larger or smaller than the other homes in your neighborhood. Too large, and your home’s value is probably out-of-line with nearby properties, making it difficult to sell and get what you’ve put into the home.

Too small, and your home may not fit in with the rest of the homes in your neighborhood, again making it difficult to sell and less valuable. However, too small is better than too large, because you can always make renovations to your home to bring it in line with other properties in your area.

Compare your home’s age and style with neighbors.

You want a home with roughly the same age and style as your neighbors. If you plunk a modern home down in the middle of a neighborhood of colonials, it’ll stand out; and not in a good way. If your home doesn’t conform with your neighbors in both age and style, you may find it difficult to sell your home and interest potential buyers in your property. Unique doesn’t always mean better; sometimes it’s just difficult.

Condition plays a huge role in value.

Both your home’s condition, and the conditions of the homes around it, directly correlate with your home’s value. It’s obvious that you want your home and your neighborhood in good condition. However, if your home is run-down but your neighbors’ homes are in good condition, their positive presence may not make much of a difference in your home’s value.

Likewise, if your home is in perfect condition, but the homes around you are worn and in poor repair, your home’s value will suffer. Ideally, you’ll want your home and the homes around you to be in similar conditions.

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Steve SchraderBachar is a local mortgage planning expert who resides in Iowa and provides service to the clients of his mortgage planning practice across the Midwest.  You can reach Steve at 1-515-289-4381 or 515-360-5197.