Whether you’re ready to sell your home or are just starting to daydream about cardboard boxes and moving vans, one thing is clear: There’s a hot housing market just waiting for you to jump in. It’s easy to get eye-popping returns on your real estate investment, no matter what neighborhood you’re in — but first, you’ll need to do a little research to become your home’s best advocate.

To make sure the full property value ends up in your pocket, it’s good to know how housing prices change over time. Here’s a look at everything you need to know about your home price — and how to make buyers eager to pay every dollar.

How housing prices change year-to-year

The real estate market is like balancing yourself in the middle of a seesaw (don’t try that one at home!). Any change in the environment — like a dog running by or a sudden breeze — can shift your weight and make the seesaw dip one way or the other. In the real world, those environmental changes can be things like supply and demand or homebuyer habits, and as they change, so do property values.

Lately, though, the seesaw has been leaning steeply to one side. Housing prices are on the rise — and that’s good news for potential sellers.

Average home value increase

According to SFGate, the national average home value increase is between 3.5 and 3.8 percent yearly. That means a house worth $300,000 one year may be worth $311,400 the next.

However, as charts from VisualCapitalist show, many housing markets increase at rates higher than the national average. That’s especially true right now, when demand is so high and supply is so low. In fact, the National Association of Realtors (NAR) reported a 16.2% year-over-year increase in the median price of existing homes, which is significantly higher than normal home appreciation rates.

In short, real estate prices are setting records left and right — which is pretty exciting if you want to sell your home quickly and for full price.

Do property values really double every 7 to 10 years?

In the past, the “rules” of the real estate game were a little different. For example, some buyers and sellers wondered if property values doubled for every ten years they lived in a home.

According to a study by the NAR, house prices increased from 1989 to 2019 depending on length of tenure — for example, 29% appreciation after seven years, and 39% after 10 years. During the time-frame of this study, property values weren’t doubling every 7 to 10 years — but now, depending on local markets and supply vs. demand, prices could potentially double in much less time.

In fact, in the current market, your real estate value might be going up every minute.

The housing market and your home’s value

The local housing market, naturally, has a lot to do with real estate prices. Every house currently for sale in your area, as well as those that have sold recently (often within the last six months), will play a role in determining how much your home is worth.

Right now, that’s a pretty big deal. With houses selling so quickly and for so much, comparables will show buyers that your high asking price isn’t just reasonable — it’s also fair.

Here are some things to consider when looking for local comparables:

• Architecture/design style
• Square footage
• Lot size
• Number of bedrooms
• Updated appliances
• Age of roof
• Age of carpet

However, the broader housing market also has a role to play. When the national demand for houses is through the roof and supply just can’t keep up, the value of every existing home, regardless of location, will increase. But where does that demand come from? According to Forbes, interest and mortgage rates are part of what drives the buying frenzy: When loans are more manageable, even on pricier homes, house-hunters are likely to be motivated to make a purchase.

How to improve your property value

What does high demand and low supply mean for your home’s value? Profit! Right now, your house is a commodity, and buyers will be happy to pay top dollar for it.

However, if sitting back and waiting for your property value to increase isn’t your thing, there are a few things you can do to make your house stand out even more on the market.

Renovation projects

If that half-bath never got redone or you’ve been waiting for an opportunity to update the kitchen, now is definitely the time. Renovation projects make your home look fashionable, welcoming, and worth every dollar.

Here are some renovation projects that can improve your home’s value:

• Kitchen upgrades: Kitchens are often a big selling point for single-family homes. A granite countertop, a gas stove for foodie types, a butler’s pantry, double ovens — all of these upgrades can improve your home’s value while giving buyers even more reason to sign on that dotted line.
• Guest bathrooms: Also called powder rooms or half-baths, these bathrooms can be a profitable project if you add them where pipes already exist (for example, under a second-story bathroom).
• Master bathrooms: Everybody loves soaker tubs and double sinks in the master bath, right?
• Walk-in closets: Consider taking a little space from a neighboring room to add walk-in closets to bedrooms. They do wonders for your home’s storage capacity — and its appeal.
• Landscaping: Even the driest climate can be landscaped to catch a buyer’s eye. In areas with plenty of water, consider lush plants; in hotter areas, try retaining walls or rock elements to give your backyard some personality.
• Outdoor features: From fountains and paved paths to that dreamy outdoor kitchen, backyard features can increase your home’s value and show buyers that your property is well worth the money.

Garages

Even in a world where ride-sharing and public transportation may be viable alternatives to owning a vehicle, garages can add value to your home because buyers see them as huge opportunities. They’re storage areas, home gyms, space for that band you’ve always wanted to start — and they might even be an option for extra living space, according to BBC’s Worklife.

What does this mean for your home value? If you don’t already have a garage, consider building one on; if you do have one, don’t be tempted to convert it into an office or extra bedroom. Just give buyers the opportunity to envision using the space however they want, and they’ll do the rest.

Decks

Decks can elevate your outdoor areas — literally. But how much do they improve your home value? Well, that depends on a few factors, including:

• Deck size
• Material
• Quality of construction
• Backyard square footage
• Neighborhood/area trends

At the end of the day, if you’re particularly handy or you know a friend from school who just loves building decks, it’s probably worth the addition. However, if your area is particularly cramped or a DIY project of this magnitude would probably result in more than a few pulled muscles, it might be better to skip this one.

Guarantees

One thing that can really bring up a home’s value is a Bungalo certification. Certifications guarantee that a house is safe, well-constructed, and free of pricey problems — and, on top of that, Bungalo certifications come with warranties that buyers will love.

Understanding and assessing property prices

So now you know the ins and outs of real estate investments — how do you turn that data into profit by determining your home’s current or future value? And, perhaps more importantly, how can you be sure you’re selling your home for the best price?

To answer that question, it’s important to consider what house-hunters look for when deciding which property is right for them and determining value before making an offer:

• How big is the home?
• How many stories does it have?
• Does it have a master, guest, and additional bedrooms?
• Does it have an office?
• Is the kitchen stocked with the latest appliances?
• Are the roof, carpet, HVAC, electrical and other elements in good condition?
• How long is the commute to local amenities and work locations?

Remember that different layouts, designs, and even lot shapes can perform differently in different markets — which means the selling process can quickly get complicated.

Selling with Bungalo simplifies things by paying you based on comparable properties in your area. That means you don’t have to worry about doing the research yourself — and you certainly won’t have to fight to get what your house is really worth.

Make the most of the housing market

It’s currently a seller’s market out there, and if you’re ready to list your house, there’s no better time than right now. You’ll have buyers jumping up and down to see your property, especially if you’ve spent a few weekends finishing up those renovation projects — and a Bungalo certification goes a long way, too. Even when the market changes, you’ll have access to all the tools and solutions necessary to get the deal you’ve been dreaming of.

Start working with Bungalo today to get top dollar for your home without breaking a sweat.

This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance or investment advice. Bungalo always encourages you to reach out to an advisor regarding your own situation.