Factors that Affect Value of Your Property
Factors that Affect Value of Your Property
Other than the quality, aesthetics, layout and construction of the house, there are many other factors that can affect the value of your land property. If you planning to sell your house, you need to look into its market value and factors outside the box as well.
Let’s walk through each of the eleven factors that ultimately can decide the price of your house.
A fact that is well known and understood is that location is the foremost factor that any investor looks at. The search investigation starts from here. A perfect house will be in proximity to all the basic facilities such as quality of the local school, employment opportunities, hospital, recreation, mall, transportation etc. A house as such can guarantee to fetch you a good price.
Such conditions tell you why certain areas or neighborhoods are very steep in prices while others are not. A location is bound to target the overall value of your property. The size and condition can be altered, but the location cannot. An amazing house at a cheap location is less likely to sell.
An excessive load of money in circulation is what inflation is, meaning a drop in the value of money. This leads to a strike in the cost of commodities such as land and property value. However, the economy as a whole can also affect or rather impact a person’s ability to buy or sell. If the conditions are unfavorable or slower, a house on sale in the market can struggle.
On the contrary, inflation can lead to home sellers getting good deals and returns since demand and appreciation are directly correlated to the economic conditions. Excessive money in the flow means an increased demand for homes and property prices going up.
The local market
Check the number of houses on sale in your area. If there are many houses up in the market and not many people are buying this means it’s a buyer’s market, similarly, if there are many buyers but fewer houses then it’s a seller’s market. This relationship between a buyer and seller is what makes up the condition of your local market and area. If you are a buyer and buying in a buyer’s market, then you have a lot of room for negotiation and turning the deal in your hand. If you are in the other circle, then you will not get much room to negotiate and adjusting to the price will be your last resort.
Additionally, market conditions also affect the time length of your home (when it will sell). In a seller’s market homes sell quickly, but in a buyer’s market, it is very usual for homes to see longer days.
If your home stays on the market for a longer time, then a buyer might start to think there is something wrong with the house.
Population growth is similar to what we talked about. If the population rate is high in your city then more consumers and buyers are in the market which leads to a spur in the property value. It’s simple, more people mean more demand; fewer people mean less demand. Demand also increases the value of a property.
Improvements in Nearby Properties and Infrastructure
If the growth and development in your community or area are changing, this will certainly affect your property. The more the demand for property in the area, the higher the value will be. Any sort of the change in your neighbor will impact a change in the value.
Is your neighborhood safe? What is the crime rate? Did any crime occur in your house? These are very important questions that you need to consider. An unsafe neighborhood is a big red zone. The history and any negative information from nearby or public records will push away buyers.
What do the homes in your neighborhood look like? do they have modern or traditional designs? Is your community smacked with a lot of houses?
If your house does not stand out, then you might have to consider renovating it and making it up to the competition to sell at a market value price. Nobody wants to spend an extra dime on the renovation.
Don’t underestimate the power of aesthetics. A house that does not make a good first impression will instantly subtract all points even if it’s in a prime location. The curb appeal of your property and how you picture it in the market is the second most important thing a buyer looks at after location.
Adds on like solar panels, insulation, and glazed windows will definitely amp up your game in the market. With such a high price of electricity, high-quality materials will most likely have a higher value.
Upgrades and Updates
As mentioned above, upgrades can increase the value of your property, especially if your property has outdated features and facilities. Bathroom and kitchen improvements count the most and can have the biggest value impact. Don’t forget the curb appeal.
Knowing the value of your property before selling is of utmost importance. Other than these factors, make sure to stay ahead with the recent real estate market trends, real estate comps and interest rates. One must have hands-on knowledge of real estate, property valuation and appraisal of your local area to make your house sell like a professional and successful.