Which 3 Unique Factors Influence The Value of Your Real Estate?
Homeowners can assert some control over their homes’ value provided they maintain the good condition of their properties. However, some factors influence the overall value of real estate. For example, while some prospective buyers focus on structural requirements, others are more interested in mortgage rates. So if you’re planning on selling your current home to upgrade to another, or you’re starting to invest in real estate, read further to discover some crucial factors that can influence your property’s value.
- The design of the home
Logically, an excellent home design demands a higher premium. According to data released from The Modern House research, a home’s design can influence up to a 12% increase (on average) in price. This is absolute proof of the fact that aesthetics does matter in property valuations. You may be asking yourself what constitutes a good design?
It usually is the architectural harmony between the home’s indoor and outdoor spaces. In addition to that, there is a preference for high ceilings, natural lighting, fixtures, and furnishings. These intricate schemes are things you will find in the JG King new home designs. Regardless of the land size, there is a home design to fit every budget.
As a property owner, for personal reasons, your home’s location may look ideal to you until an appraiser comes knocking. These are professionals who look for specific details to determine the value of the homes they assess. The three key indicators or exact pointers are proximity to employment opportunities, quality of schools within the locality, proximity to recreational centers, and shops.
Despite these three indicators that home appraisers value your home on, they also tend to consider accessibility to public transit, highways, and utility lines. Therefore, location is more than just the physical placement of the property. In the US home market, in a bid to compensate for the lack of location indicators, property sellers make concessions. For instance, some opt to pay for repair works or offer timeline flexibility for payments.
- The local market competition
Sometimes, even with the best locations, premium home upgrades, and other fixes, your real estate value is dependent on the local market. This implies that other properties for sale (depending on their numbers) in your locality are equally as competitive. For example, if there are more buyers in an area with fewer homes, the market favors the seller.
In this situation, homes will sell quicker; however, properties listed for too long may be perceived as ‘problematic’ homes. On the other hand, fewer buyers in an area with many homes are considered the buyer’s market. In a buyer’s market, you have the liberty to negotiate the price of a home you are interested in purchasing.
In this case, a seller will be compelled to make price adjustments to attract more potential buyers. In other words, competition in the local market greatly influences property value at any given time.
Although buyers are different, the value of a property is mainly dependent on several factors. The economy, interest rates, and the prevailing market(s) all influence real estate value. Therefore, whether buying or selling, take cognizance of these pointers.