Property Value sounds like a key jargon when it comes to real estate. Although determining the value of a property involves various elements, it is also crucial to remember, every buyer and seller is unique. So if you are buying or selling, or are simply curious about the real estate, here are a few major factors that’ll help shed light on the intriguing subject.
Your ideal location may not be the same as the buyer. For you, nearness to your parent’s house and closer to work may be preferable, but for the buyer, he/she may look for the proximity to the city centre, school, shopping malls and other transportation hubs maybe of significant value.
The value of a house is proportionate to its size. Bigger homes generally are valued higher and the cost estimation is usually done in terms of per square feet. It is also important to note, the value demand fluctuates based on the liveable square feet only which excludes basements, storage or garage. The number of bedrooms and baths a house offers is generally of high value.
It goes without saying, the overall condition of the house is pivotal. The age of the property and if it has been well maintained leaving the buyer minimum or no repairs to do, the value demand is considered quite high.
Buyers mostly get a rough estimate about a property’s value based on the value of similar properties in the neighbourhood and the value of recently sold properties nearby with similar size, amenities, year built and type of home.
Houses with modern appliances, fully-furnished, equipped kitchen, pool/garden, air conditioning, smart-home appliances and other amenities are often valued higher than the rest.
The real estate market is widely affected by the interest rates, the supply and demand ratio, and economic conditions that influence the property value.
The above factors often work together to determine the value of a property. Their importance can vary depending on the specific circumstances of the property and its location.
Krishe Pearl