Understanding the Key Factors That Influence Property Value
It is really interesting to purchase a property. And, when you are ready with your money for the purchase then you have almost covered the halfway. But even if we buy a shoes or shirt or maybe a smartphone we do some research and get to know about its value and review. The same goes with property we need to find answers for some of the question such as how is value derived? What are the factors that affect property valuation and there many other questions. If you don’t know about the factors then we have created this guide just to help you with the same. So, let’s get started.
Key Factors That Determine Property Value: A Comprehensive Guide
Purchasing a property involves many of the step from housing finance to putting a down payment. It is important that you are making the right decision with your property purchase. This is why it becomes to ask yourself some questions before you buy the property such as is it overpriced? Will it worth your investment? And many more. Here are some of the points which will help you to determine the property value for your purchase.
1- Location
One of the most important factors while purchasing a property is location. Those properties in well-developed neighbourhood will be somehow expensive as compared to those in underdeveloped locations. Is it located in short distance with schools, Restaurants and malls? And there are many of such points that influences the property value. These properties are high in demand because they are built by top developers and are easily connected with amenities.
2- Space and size
The other factors that affect property valuation is space and size. Generally, a property valuation is indicated by its price per square foot. However, the bigger the property, the higher its value. Apart from this, the property valuation is also done on the factors such as how much of bedrooms it has, bathrooms and these kinds of things. If you are buying a property which gives a beautiful view then the cost of this property will be slightly high.
3- Nearby Amenities
It feels like a blessing when you don’t have to walk long to purchase or get daily necessities such as food, clothes, transportation and many of these things. One of the other factors fluctuating the property valuation is the nearby amenities. Few infrastructural developments such as railway stations, bus terminals, airports, malls etc. Apart from these, other factor is end to end connectivity of road is also responsible for the fluctuation of price.
4- Condition
The next cause of property value fluctuation is condition of the property. If the condition of the property is really good and is well-maintained then property value will be really high. And if the property has structural integrity, smart amenities, energy solutions and some other systems then it is going to be prices expensive. While cracks and lack of maintenance in the property tends to decrease the property price.
5- Customised property
If you are interested to make some alteration to the present structure or design of the property then the value will increase. For instance if you want to get a supreme quality of basic interior such as flooring, painting and roof. When you want to turn your home into a smart home by incorporating Alexa voice control then it will increase the price of the property.
There are many of the factors that affect property valuation as we have seen in this post. This is why it becomes important to consider buying property only through reputed builders as they are expert to pick top location with offering modern amenities. As a homeowner, it becomes important to evaluate the property even if you are interested to sell, rent or buy a property. You can take these points in consideration and evaluate your property from time to time.
FAQ's
What factors affect the property valuation?
Ans- there are many of the factors that affects the property value such as location, amenities, size and condition, age of the property, customisation and many more. Make sure to buy property from only trusted and registered developers.
What factors decrease the property value?
Ans- there are some of the factors that can decrease the property value such as delayed maintenance, damaged roof, outdated kitchen, cracks on walls etc.
What increases the property value the most?
Ans- there are several factors that affects the property costing but one of the main reasons that property value is increased is its location. If you choose a property in well developed area it costs high.
