Accurately estimating a property’s value is not an easy task, even for experts with years of experience and lots of relevant data. Some homes possess a special feeling that simply makes them more valuable than the competition. This is why getting a home’s estimated price right is just as much of an art as it is a science. However, while there is some general ambiguity in estimating house prices, there are some factors that always influence a home’s value.
1. Location
If you have ever sought advice on buying a home, then you will have heard the phrase, “Buy the worst house in the best area.”. A home’s location has a greater influence on its price than any other factor. Roughly speaking, homes in more desirable neighborhoods cost more, but it is a little more complicated than that.
Every neighborhood comes with an upper and lower price limit for all houses contained within it. However, a home’s price can fluctuate beyond these limits. Each neighborhood has certain streets with the best views or the best access to amenities, and properties on these streets are worth more than average. Properties in good areas accrue more value over time and make better investments.
2. Size
When it comes to space, more is better. The larger your home is, the more buyers will be willing to pay for it. With each passing generation of new houses and apartments, space is increasingly at a premium. Buyers are willing to pay more for a few extra square meters. However, bear in mind that space is relative. If your home’s has a lot of space and a lot of rooms, then each room may feel small. Conversely, a smaller home will feel larger if it only has one bedroom and a combined kitchen and living room.
The size of a property is also relative to its neighborhood and the kind of people it attracts. For example, larger properties in student neighborhoods may struggle to find a buyer since most people looking for a home will not want something too large. Conversely, a property which is similar to everything else in its neighborhood, but is also slightly larger, will be in higher demand and attract a premium price tag.
3. Rooms and Amenities
Even when you have the biggest property in the best neighborhood, a home’s value comes from its rooms and its facilities. Prospective buyers care about the number of bedrooms, bathrooms, whether or not the home has a garage, garden space, office space and more. When you are selling a property, try and bear in mind that some rooms can do double-duty. Instead of saying that your house has four bedrooms, try saying that it has three bedrooms and an office while mentioning that the office can be transformed into a fourth bedroom. More bedrooms and bathroom add value up to a certain point, but most buyers will not expect more than four bedrooms and three bathrooms.
4. Comparables
Your home’s comparables are how it can be directly compared to other properties in your neighborhood. When other, similar houses are worth a lot of money, your house’s value increases. By the same token, you can make your home appear better than the competition by emphasizing its distinguishing features. Examine all the properties that have recently been sold in your area and try and figure out what they have in common. If you can show that your house has the same positive features as these others, it is worth more. You can also look at the properties that have failed to sell for a long time and figure out ways in which you do not want your home to be compared to them.
5. Technology
Technology has worked its way into every aspect of our lives and our homes are no exception. Prospective buyers, especially younger people, care a lot about aspects like plentiful power sockets, the router connection point, whether or not you have a smart meter installed, and any other ways they can integrate smart living into their new homes. Other technological features like automation tools and security systems help increase your home’s value. The presence of energy-efficient appliances helps your property stand out to the environmentally conscious as well as those looking for cheap energy bills.
The Five Factors
These are five key factors that influence your home’s value. Its location, size, rooms and amenities, comparables, and its technological friendliness all play key roles in determining its price. Other factors also play a part and are best explained with the help of an expert. If you want to know what your home is worth, you can follow this link for an online house valuation. Getting a home valuation is easy and is a vital step when you are interested in selling.
