Even in a fairly stable market, it can be hard to get a true valuation of your home. In essence, a house is worth what someone is willing to pay. Yet, you don’t want to price your property too low and give it away for cheap, nor go too high and turn people away from buying. Thus, knowing the factors that dictate value can give you a much better indication of what your property is worth. Source: Pexels Supply and Demand One factor that is out of your control is the state of the housing market. There are many external factors at play here. These can include interest rates, the economy, government subsidies and initiatives, and even national employment rates. Generally, you need to know if it’s a buyer’s or seller’s market. When it is a buyer’s market, there are few people looking for a property, but many are available. Thus, house prices are lower because of reduced demand. A seller’s market is the opposite, when plenty of buyers compete for a few properties. The Neighbourhood Source: Pexels The neighbourhood your home is in has a large bearing on its value. Some areas are much more desirable than others. It could be down to school catchment areas, how close your home is to amenities, and even the prospect of large infrastructure being close by, such as major road or train access for commuters. Unfortunately, it is hard to gauge the state of the property market in a specific location unless you are in the property business yourself. This is because you really need to know the value of sold homes in the area and how fast they are going. It is often a good idea to approach a professional and ask them: what is my house worth? This can help you get a good assessment of the location and neighbourhood. You can even do this online, where you will get an almost instant response. This is done with an advanced algorithm that uses 4000 data points, providing an exact, tailored figure for your home. The Home Itself The home itself is the final decider. Generally, the number of bedrooms, bathrooms, and other facilities, like gardens and garages, can affect value. Your home’s internal fittings and fixtures can also add worth. New bathrooms and kitchens make the total rise, as do expanded living/storage areas like loft conversions and extensions. When a home needs renovation, it tends to drop in value. This is especially true if major parts of it, like the roof, need replacing. This is why it pays to keep your home up to date in the long run. More than ever before, energy efficiency is also at the forefront of people’s minds when buying new homes. Using these valuation factors, you can get a rough idea of what your home is worth. Look at similar buildings in the local area and see if they are selling. Experts will know how much they are actually selling for, so don’t be afraid to approach one. Soon, you should have the right price-to-selling-point ratio for your home.
The post What Factors Decide Property Value? appeared first on Lukeosaurus And Me.
