Trying to price a property accurately, whether you’re preparing to sell it or making an offer on one, can be a challenging task. Home prices are said to differ greatly depending on several aspects.
Effective home valuations will help simplify the selling process and also assist you in securing a better deal for your prospective client. To achieve this, it’s important to understand factors that may affect the sale value of your property.
The following article outlines some of the factors that may influence the pricing of your property. They include:
- Location
As a property owner, you might be wondering, ‘what’s the value of my property? And does location influence its value?’ The location of your property is one of the most important factors that influences its value.
Your property’s proximity to everything from local amenities to transportation systems will all affect its sale price. For instance, if your property is near tourist destinations, its resale value might be higher. However, it’s important to understand while these amenities will improve your sale value, some clients might find it hard to live or invest near amenities such as public transport due to noise pollution.
In addition to proximity to amenities, the area’s crime stats may influence the sale value of your property. If an area has high crime rates, potential buyers may be reluctant to buy your property, reducing its value. Additionally, the market your property is situated in may influence its sale value. For example, properties in big cities and urban centres may cost much more than those in the countryside.
- Property Size And Usable Space
Size is another factor that may influence the sale value of your property. The usable space may affect the value of your property too. Case in point, pricing might be lower if you’re selling a big house with little bathrooms, bedrooms, and kitchen space.
Thus, large property with lots of usable space such as a large kitchen will have a higher sale value than a small-sized property. Yet it’s important to conduct extensive research about your potential customers to understand their needs and expectations better, ensuring the right pricing. Overpricing your property may not attract would-be homeowners and may affect your reputation.
- Property Age And Condition
New properties typically have a higher value. This is because the critical parts of the home, such as electrical and plumbing, are newer and have lower chances of breaking down soon.
Henceforth, the potential buyer will have peace of mind for some time before they start to replace and repair their property. Meanwhile, an old property may have a lower value as it might require replacements in a few months.
Plus, the condition of your house may influence its sale value. Replacing and repairing damaged objects and sections in your property will go a long way in increasing the value of your property. While you can conduct the repair yourself, it’s important to invite an expert. This will ensure you have a warranty for the home improvement works done and guarantee quality results.
- Economic Outlook
Your country or city’s economic status may influence the sale value of your property. A stable economy means that many people have a higher purchasing power, increasing the demand for your property.
On the other hand, an economic slowdown, like high unemployment rates, forces the value of properties to reduce. Other factors such as inflation may also affect the purchasing power of future property owners, affecting your property value.
- Political Factors
Several political factors may influence the value of your property. Political instability may lower the value of your property for potential buyers might be unwilling to make a purchase during distressing times.
In some situations, national and local officials implement policies that may affect your house’s resale price. Regulations such as price-control laws, homeowners’ mortgage subsidies, tax increases, and others can impart a great impact on you as a home seller.
- Supply And Demand
The market forces will play a huge role in influencing the price of your property. If you live in an area where many buyers are flocking to purchase a limited supply of properties, your sale value will be higher. Supply and demand can fluctuate throughout the year, causing the market to swing back and forth, favouring the seller’s and buyer’s markets.
Apart from the demand and supply, other factors such as home loan interest rates might determine whether the market in an area is a seller’s or buyer’s market.
Bottom Line
As discussed above, there are several factors that may influence the sale value of your house. This includes the location, market forces, and size and condition of your property. Understanding these factors will help you formulate the correct pricing, simplifying the process of selling your property.