7 Important Factors That Influence The Valuation Of Your Home

The first stage in every discussion, whether you’re a purchaser or a seller, is to understand the value of the property. Knowing what factors can affect this value is very useful as it becomes relatively easy to predict the price or cost you would get for a property at a given time. Here are seven features that significantly impact the value of your property.

The Number Of Rooms The Property Offers

Understanding how your house is valued is the first step in determining the best price to list it for sale. The fact that this is the most obvious aspect also makes it one of the most crucial. 

The number of bedrooms your property has will influence the price it will likely sell for.

A one-bedroom property will nearly always be valued less than a three-bedroom home in the same neighbourhood, that is in the same condition, and has the same design. Even though your one-bedroom apartment’s main bedroom is larger than the rooms in a two- or three-bedroom house, it doesn’t matter. Buyers will spend more when the property has more bedrooms.

The Location and Surrounding Amenities

The value of a property is most significantly influenced by its location. Location includes not only the neighbourhood but also the property’s location, orientation, and surroundings.

Buyers want to live in areas that offer convenience, so the amenities nearby have an impact on the property’s value. The property’s proximity to business, entertainment, and medical centres, as well as to schools and hospitals, affects the value of the property. 

Market Conditions

Property prices are influenced by supply and demand, much like the price of any product. Buyers can choose from a large selection of stock when there are many sellers. A buyer’s market is one where there is a lot of inventory, which works in the buyers’ favour. 

You should sell in a seller’s market because, as you would have figured, sellers benefit from such markets. In a seller’s market, homes frequently sell more rapidly and for a higher asking price. But even in a buyer’s market, your house can still sell, you simply need to price it competitively.

Materials Used To Build The House

These components include the supplies used to construct your house and/or for more recent improvements. However, this is not always the case because well-maintained older homes in desired architectural styles with original elements could command even higher values. Often, the value may improve if your home was built more recently with new materials.

Therefore, it’s crucial for homeowners to keep up with necessary maintenance and repairs. It’s also a good idea to give your home’s exterior a new coat of paint and to replace any noticeable problems like broken fences or cracked roof tiles before putting it on the market.

Age of The Property

Age is yet another element that significantly affects how much a property is worth. Purchasing older and newer homes both have advantages and disadvantages, and a new home doesn’t always appraise more than an older property. 

If it doesn’t need major repairs or improvements, buyers may be more prepared to spend extra for newer properties. Property buyers take into account the structure’s condition in addition to age. People prefer to purchase an older home that has been well kept over one that needs extensive renovations.The cost of homes in your suburb is another important factor that has an impact on the value of your property.

The Value Of Property In the Area

Pricing your house by looking at similar properties in the neighbourhood doesn’t have to be a guessing game. There are numerous reputable organisations that can undertake what is known as a Comparative Market Analysis and provide homeowners with this data. 

While there are certain outliers, such as historic homes and hotels, in general, residential properties on the same street are priced similarly.

Technology

Last but not least, technology has an impact on every part of our lives, and this trend now extends to our homes .Having a tech-friendly home is becoming increasingly important, and simple features like built-in charger ports and thoughtful power outlet positioning can definitely boost the desirability and price of a property.

Also highly popular are eco-friendly value-adds like solar heating or gas and grey-water recycling systems, as well as home automation solutions, particularly for security systems.

Every property is unique and many different factors can influence a home’s value. Always seek the advice of an expert. Estate agents can offer a CMA (Comparative Market Analysis) that will include market factors as well as the worth and selling price of comparable houses in the neighbourhood. Estate agents are knowledgeable about the real estate market and the variables that affect home values. In addition to giving an estimated property worth, they can give sellers advice on how much they should try to undercut or overcut the market price. 

Contact us for professional property advice.

Kindly be advised that AWD Law does not enter into litigation on behalf of clients. Our conveyancers specialise exclusively in the development of vacant land, property transfers, bond registrations, administration of deceased estates and notarial practice. Should you require assistance with a litigation, kindly contact The Legal Practice Council.