When you think of selling or purchasing a property, you may want to determine its worth before having no other options but spending additional money on it. Whether an investment property or your own home, you should ask yourself this question. What variables may influence the value, and what other associated costs may come with it. Several reasons can positively or negatively affect a property’s value, including location, infrastructure, amenities, size, and aesthetics.
In this post, you will learn what can influence property prices and how to add value to your own home.
One of the most significant determinants of a home’s value is its location. Is there easy access to nearby restaurants, schools, stores, and public transportation? Is it located in a popular tourist area? Is it a short distance from the city? The value of an investment location rises in direct proportion to its popularity and accessibility.
Termites and Termite Damage
Wood destroying pests such as termites may eat away at your house’s structural timber and the wood around windows and doors.
Termites that can’t thrive without moisture include the subterranean termite species. For the most part, subterranean termites are attracted to moist and damp soil and establish their colony underground. As a result, termite infestations usually begin in the crawl space or along the house’s foundation walls. Live termites can be challenging to find as they typically hide concealed in wood frames behind drywalls. Not to mention termite damage, in most cases, extends to other parts of the house, such as roof structures. When such damage occurs, it can be expensive to repair. Because of the unknown, buyers will generally shy away from the property with an ongoing termite history. Severe termite damage not only will significantly devalue the property but will also diminish buyer interest.
Size of the House and Available Space
Price per square meter is a common way to express the market value of a real estate property. It considers both the total sales price and the property’s square footage. To illustration, the price of a 1,500-square-foot house in the neighbourhood was $300,000, and at $200 a square foot, the cost per square foot would be $2,000.
The amount of useable space determines a property’s worth in addition to its square footage. Usable square footage does not include areas such as garages, unfinished basements, or attics. Adding value to a house can be as simple as remodelling a bathroom or bedroom.
The age of the hose is an essential deciding factor in a property’s value. Less than a year-old property tends to command a higher asking price because it does not need extensive renovations or repairs. Property purchasers don’t just look at how old the house is when deciding on the purchase. They also examine the structure’s condition. People would prefer to buy a well-maintained 15-year-old property than a newer one that requires extensive renovations.
Renovation and Upgrades
Home repairs, updates, and remodelling may dramatically raise the value of your property, especially in older homes. Renovations to the kitchen and bathroom always have a significant impact on the home’s final price. Increasing the number of bedrooms, or sprucing it up from the outside, can play a critical role in determining its market value. A well-kept garden may improve the value of your house by up to 20%. Supply and demand have a significant role in determining the value of the real estate. Home prices will grow as more buyers try to purchase in a solid market with few properties for sale. Property prices will begin to fall if supply rises faster than demand.
Before making a purchase or selling a real estate property, it’s critical to know its actual worth. There are certain aspects you can control to increase the value of your property, while others may hurt the price of your house.
You should only engage with real estate agents with high expertise in valuing when it comes to selling. They can provide current real estate market trends and comparable sales and appraise homes in your local community.