Factors That Affects Your Property's Market Value
Factors to take into consideration that can affect your property’s market value.
12/06/2020
Residential homes or commercial buildings are properties that can be considered as an investment or a self-liquidating asset. It is an investment because you can get a certain revenue from the value of your property in the event that you put it up for sale later on. It can also be a self-liquidating asset if you intend to rent it out even while it is still mortgaged. In terms of the latter, you are already generating revenue.
However, the value of your property may vary. If you want to have a good insight into how much your residential home or commercial building presently costs, then get in touch with a property appraiser who will be able to assist you with your needs. For sure they will take into consideration the factors that can affect your property’s market value as those listed below.
Location
One of the factors that greatly affect the value of your property is its location. More often than not, if your property is located in a popular place or a place that is readily accessible, then it will have a higher value. For instance, homes close to schools, shops, restaurants, and other neighborhood amenities tend to be more expensive than homes located in far and remote areas.
Size and Space
Another factor that can affect the value of your property is its size and usable shape, along with the upgrades you have made to it. Generally, the market value of a property is mentioned in terms of the price per square meter or square foot. This is the reason why a bigger property is more costly. Aside from this, usable spaces such as a garage, a basement, or an attic which are not commonly included in the price per square meter or square foot, can also add value to your property.
Overall Condition
It is often the case that buyers are likely to pay more for newer buildings or structures. This is because usually, newer homes or buildings require less maintenance or renovations. However, there are also instances wherein buyers opt for a 20-year old structure that is well-maintained compared to a news one that is poorly built. The renovations you make on your property, such as an upgrade in your kitchen and bathroom, can also increase its value. Getting advice from expert property valuers can help you achieve your desired property value or get the best out of your property in terms of profit or at least return of investment.
Market Situation
Finally, the overall market situation and economic condition can also affect the value of your property. For instance, with a thriving economy, it is more likely that more people have jobs, allowing them to earn more money than they can use to purchase a home. This can increase the demand for homes, but with a fixed supply, or not that many new homes being built, the value of your home is increased.
In conclusion, the value of your property may be greatly affected by its location, as well as its size and overall space. The number of years it has been standing, as well as its overall condition along with the upgrades made with it can also affect the value of your property. Finally, the overall real estate market condition and the economy also have an impact on the value of your property.