Location:

Neighborhood: Homes in desirable neighborhoods with good schools, low crime rates, and proximity to amenities like parks, shopping centers, and public transportation tend to have higher values.
City or Region: Property values can vary significantly based on the city or region. For example, homes in metropolitan areas or regions with strong job markets and economic growth are generally more valuable.
Property Characteristics:

Size and Layout: Larger homes with more bedrooms and bathrooms typically have higher values. The layout, including the flow of rooms and the efficiency of the space, also plays a role.
Condition: Well-maintained homes with updated features, modern appliances, and quality construction are more valuable. Homes that require significant repairs or renovations may see a decrease in value.
Market Conditions:

Supply and Demand: When the demand for homes exceeds the supply, home values tend to increase. Conversely, if there are more homes on the market than buyers, values may decrease.
Interest Rates: Low mortgage interest rates can increase home values by making it more affordable for buyers to borrow money, leading to higher demand.
Comparable Sales (Comps):

Real estate agents and appraisers often determine a home's value by looking at recent sales of similar properties in the same area. These comparable sales, or "comps," provide a benchmark for what buyers are willing to pay for similar homes.
Economic Indicators:

Broader economic factors, such as employment rates, inflation, and consumer confidence, can impact home values. A strong economy generally supports higher home values, while economic downturns can lead to declines.
Local and National Policies:

Government policies, such as tax incentives for homebuyers, zoning laws, and interest rate changes by the Federal Reserve, can also influence home values.