There is a huge difference between the price of a property and its value. A seller can ask for a price that is way too high or too low for the property’s real value.
Which is why sellers need to understand how to evaluate the property’s real value before putting it on for sale.
There are many factors that affect and have a saying on the value of a real estate property. And whether you are investing with the intention to sell or to move into, you need to pay attention to these factors for they won’t only affect the value of your property, but also guarantee you have an unmatched quality of life.
Real estate experts always advice to look for plenty of houses first before you make your purchasing decision and that is to make sure at the end you made the right one.
Savvy investors should always put themselves in their buyer’s shoes and invest in real estate properties that ensure a fast and profitable sale.
Here we give you 8 factors to pay attention to when hunting for houses that will affect the value of a real estate property.
Location is one of the most important factors that affect the value of any real estate property and that because some areas are worth a whole lot more than others.
Real Estate properties located in vital areas where all the services and amenities you need are only a walking distance away from you would not sell for the same price as a property located on the edge of the city and far away from any sort of action.
A property that comes with an unblocked view will definitely sell for a higher price than an apartment with a blocked view. Whether it’s a sea view apartment or Mountain View apartment, this type of properties have higher demands than let’s say a property that overlooks other buildings and structures.
Hence, if you are an investor looking to gain wealth through your real estate investment, then opt for properties that have breathtaking views of the sea, ocean, landscapes….etc.
3- Floor level
Yes! Apparently floor level is something that affects the value of a real estate property. A higher floor apartment will sell for a higher price than a lower level apartment.
The reason why higher level apartments sell fast and sell high is that they always come with a view and are less noisy than ground floor units. When investing in a high-rise residential project, it is always profitable to go for a high floor apartment.
A new roof or a remodelled kitchen will always increase the price of your property. Buyers always search for a place they can just move right into without the need to fix or upgrade.
That is why savvy investors always look for fixer-uppers where they can upgrade, update and remodel then sell. It’s a known fact any upgrades and repairs made will always recoup more than 80% of their value.
Your property’s neighbourhood has lots to say about its price. A friendly neighbourhood, a safe neighbourhood and kid-friendly neighbourhood will increase the price of your property.
Buyers always care about the neighbourhood them and their families are going to settle in. Hence, a quality neighbourhood that offers all of the above and more will affect the value of your real estate property.
6- Property status
The physical status of your property affects its sale more than you can imagine. If there is a problem with the piping systems or the kitchen floor needs to be remodelled, buyers won’t be excited about purchasing your property or they will buy it for less than you ask.
Buyers usually look at such properties as properties that need a lot of work and a lot of money. Buyers seek ready-to-move-in properties where they can just start settling down immediately and attend to their daily errands and tasks.
Living beside good, welcoming and inviting neighbours is something every buyer is looking for. Good neighbours benefit the value of the real estate property.
Neighbours who are noisy, intruders or just annoying with their daily habits will make it hard for a property to sell for a higher price. Hence, when investing in a property with the intention to sell or rent, you should get to know the neighbours first.
If you have to, do a check up on your neighbours to make sure they aren’t dangerous people who will put the lives of everyone else at risk. If it is the other way round, be sure your neighbours will do the exact same.
8- Amenities and facilities
Property hunters are willing to pay higher for properties that are located near world-class amenities and facilities such as shopping malls, cafés, restaurants, cinema complexes, supermarkets, schools, hospitals, pharmacies and more.
This also includes nearby subway stations and buses.
Around the clock security system is something that makes potential homebuyers buy a property in a heartbeat without negotiating the asking price.
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