It is really important to know the correct worth of your property, irrespective of whether you are buying or selling one. For most of the people out there it is the question of a considerable investment, if not the investment of a lifetime. So we have decided to analyze the factors on which the evaluation of a property depends so, you can at least have a clear picture about what factors can benefit you and what factors can go against you.
1. Location: Believe it or not, this is perhaps the most important factor influencing price under a stable economy. The locations of the house, the neighborhood are of utmost importance when deciding the property value. Houses which are located in good neighborhoods are supposed to have higher prices. This also incorporates the distance from amenities, major markets, schools, transport hubs such as railway stations and bus stops.
Localities that are in immediate neighborhoods to major industrial establishments, places of work, fetch higher prices. This is generally because of the notion of people wanting a lesser commute. Also, places near educational hubs expect to fetch more value because of the greater demand of property in the neighborhood.
This can also be extended to include to the likelihood to the exposure to storms or floods. Regular exposure to floods can be detrimental to the price.
2. Features: What features does the house incorporate is also an important metric in price determination. Most of the property evaluation is done on the basis of area of the complex and what additional features it includes, for example a chimney, or the size of a backyard, a particular format of construction or additional space that can be later utilized. Garage or guaranteed parking space also adds to the value of the property.
This can also include any home improvement and landscaping done, and how much does it match the expectations of the prospective buyer. A good paint job and proper interior decoration can also increase the value of the property.
3. Condition and Age: Newer properties are expected to fetch higher prices in the same locality keeping other factors constant. Also, the condition of the property, the damages if any plays a role in deciding the value of the property too. Other physical features of the house need to be robust too for better evaluation. There should not be any visible cracks or faults in the ceiling or the walls.
4. Market Conditions: The condition of the market at the time of the transfer is also an important factor. It depends upon the condition of the real estate sector, the interest rates, the availability of loans for purchase and overall robustness in the economy. Property values boom when the economy has a constant or a progressive growth rate.
5. Sales Pitch: Believe us or not, this is as important as any of the other factors. How you pitch your property to your prospective buyers or how convincing a sales pitch is made also determines the value of a property it can be sold for. It is very important that your agent gets you a deal, which meets your needs. The level of commitment from your agent should really match your expectations.
One thing you should always remember while dealing with property decisions is to not to act in haste. Property evaluations are critical to making the correct financial decision which is why it is important to get an accurate valuation from experts such as Altus Group to ensure your investment is sound.