Property value is affected by a myriad of factors operating in the real estate market. Setting a realistic value of the property is important for both the buyer and seller. Whereas, understanding what factors really affect the value of the property can save buyers from overpaying and sellers from being short-charged.
Here are the top 5 factors that contribute to the value of a property:
Prime Location
The location of a property is the biggest factor in determining its worth. Homes close to good schools, parks, shops, and public transport are more valuable. Safe neighbourhoods with low crime rates are also preferred. A prime location enhances the property’s appeal to a wider range of potential buyers ultimately boosting its marketability.
Size and Layout of Property
After location, size plays an important role in the determination of property value. Homes that are larger and have a greater number of rooms, along with a well-designed layout, generally have a higher value. Buyers usually prefer homes that are spacious and thoughtfully designed.
Local Market Trends
Property values are impacted by the state of the housing market and the overall economy. In a market where there is high demand and limited supply, home prices tend to increase. On the other hand, in a buyer’s market, prices have the potential to decrease. Interest rates and employment rates are also important economic factors to consider that affect property value.
First Impression Matters
Curb appeal also known as the appearance can also enhance the property value. Maintaining a proper garden, a fresh coat of paint and a tidy exterior seem to be appealing to the buyers. Similarly, the interior of the property also holds a great significance so keep it stylish, clean & well-maintained.
Property Age
The value of a home is greatly influenced by its condition and age. More modern homes or recently updated ones typically have a higher value since they require less maintenance. Well-maintained and up-to-date homes with modern features tend to attract a greater number of potential buyers.
Even though several tools and professionals can help you know the property value. It is really important to understand these factors as a buyer or seller.
However, working with a real estate professional can assist you with the valuation & overall procedure.
