Factors That Affect Property Value

Factors That Affect Property Value

Are you thinking of putting your property on the market? This might just be the opportune time to do so. According to the November Housing Market Report of the National Association of Estate Agents’, home buyers are on the lookout for properties, with approximately 20% increase during that month.  In this article we look at factors that affect property value.

So what preparations should you make to ensure you get a great deal for your home? Knowing what will affect the prices of homes can help you out.

In this article, we’ll list factors you might find useful:

Location

One of the most important factors that affect property value.  If you ask an estate agent, location will be at the top of the list. Even if you were a home buyer yourself, the location of the property will affect your buying decision. If the property is in a prime location, you will be expected to pay a higher price. Factors that affect the value within a specific location are the prices of the recently sold properties within the area and the community. Also, if there are schools in close proximity to the location, the quality of these schools will have an impact on its value. Potential home buyers care about the community in the area. If they feel the community has strong ties and is pleasant, this can help. Also, bear in mind that properties located in rural areas cost less than those in the business district.

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Proximity to Local Transport

Another important factor that affects how much a house is priced at would be it’s access to public transport. Properties near bus and train stations, as well as those near supermarkets, parks and hospitals are preferred by more buyers and sellers can demand higher prices.

Size and Design

The larger the property area and the home, the more expensive a house can be. If your home has several bedrooms, it is more likely to sell for a higher price as opposed to a bungalow with just one bedroom. In some instances, though, a home with fewer bedrooms but large ones can be more appealing than a house with many but smaller bedrooms. The layout of the house has an impact on the value of the property too. An open layout with less walls and partitions, looks more spacious and this illusion can convince a home buyer to pay more because it looks bigger than its actual size.

Age

How long the structure has been in existence is also a deciding factor on pricing a home. Normally, the newer the home, the higher the price will be simply because the structure is almost new and no major repairs and renovations are needed however there are homes that have been built decades ago and are still worth far more than the modern homes. These are old homes that have historical significance and have been well-maintained.

Condition

Will you pay more for a property that’s older but well-kept and in need of a little renovation or one that’s newer but requires major renovation? Chances are, you’ll go for the former. More often than not, the majority of home buyers will have the same answer. The condition of a home matters and will definitely increase or decrease its price.

Kerb Appeal

The outer appearance of your home or its “kerb appeal” is also one of the factors that can help determine the price of your property. If you have a spruce up and a tidy garden, you could be looking at a 20% increase in the market value. This is according to a survey made which yielded results showing buyers were willing to shell out more money for a property with a well-maintained garden than one with a garden that had been neglected.

View

Another aspect potential buyers consider when looking for a property to buy is the view they will see when they look out of the window. A home with a seaside view can demand for a much heftier price than one with a blocked view. Harbour views are enticing to buyers and if your property has this, it is best to include this in your listing.

Improvements and Remodelling

If you have the spare cash for any home improvements, you might want to invest in remodeling the kitchen. Most homeowners consider this the heart of the home where most activities happen. With proper planning, you can get an ROI between 60% and 120% of the money you will spend remodelling your kitchen. Also, if you only have one full bath, an en-suite bathroom would be a good idea. Just ensure you keep records of the improvements you have made on the property in case would-be buyers want to see proof.

Infestation and Untoward Incidents

Estate agents say that potential home owners care about property issues like fire or pests before they invest. If your property has these elements, it’ll be harder to ask for a better price.

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Desire of Buyers

If your home is the dream house of a potential buyer and the property as a whole is appealing to your prospective buyer, he or she will be willing to pay the price. Buyers take into consideration their personal and emotional needs when it comes to home ownership and there are people who become interested in a home simply because they feel connected to it. So, if a buyer is too eager to buy property, the price is a secondary issue.

Economy

Another of the major factors that affect property value. When the economy’s good, wages and compensation increase and the buying power of consumers becomes strong. If this is the case, there’ll be more people who’ll want to own or invest in a second home or a new one entirely. In effect, the demand gets higher. With higher demand and an increase in real income, house prices will also tend to rise.

House prices are determined by these factors and it helps to know them so you can create a game plan to ensure make money when selling your property. Hopefully you found this information helpful. And if you have tips of your own, feel free to share your views.