When it comes to home buying, everyone is particular about the house's quality, the location, the amenities that a house comes with, and much more. In short, these little things are very significant when it comes to deciding factors that affect property value.
Whether you buy or sell an investment property, it is mandatory to keep in mind how the prices of property will increase when it comes to market value.
Your property's market value is based on what the potential buyers in the market are willing to pay for your home. Based on my experience, I can deduce that every buyer is different.
For example, one family might choose a home based on a perfect location close to schools and workplaces. In comparison, the other family will weigh the size and condition of the house.
Detailed below are some of the significant factors that affect real estate value that I ruled out while buying an Apartment in Jaipur city. So that when you set out for buying an investment property or for selling one, you know what exactly you should look for.
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Here, we will look at all the factors affecting the property value that will help a buyer and a seller.
One of your property value's best markers are the homes in the neighboring areas of your property that have been recently sold.
Whether it's a property appraisal or a comparative market analysis by a professional, most real estate experts will consider 'comps' (comparable homes) to estimate the approximate value of your home.
Another factor that adds up to the value of your property is the location. If the project/property is close to all the city's key areas, it will be the first choice of the home-buyers. Moreover, if the location has extensive commute options, it will add up to the value in a better way.
You can also check your property's worth according to the location with a 99 acres home value analyzer.
The condition of your home is one of the significant factors that determine the value of your property. Usually, if the property is in good shape on the outside and on the inside, it will surely attract more buyers.
On the contrary, if it is shabby with broken windows or chipped off wall paints, it will make the buyer lose his/her interest in the property in the first look.
We can see in this way that people will be more interested in buying a 10-year old house that is well maintained rather than a new one that needs renovation.
While estimating your property's buying or selling value, the area is an essential factor to consider.
In fact, the relation of price and size of the property are directly proportional. A bigger home has a higher market value, and a smaller one has a lower market value unless the location is exceptionally remarkable.
Specifically, if you buy a spacious investment property, it can positively impact its valuation while selling the same. The prices buyers will pay per square foot varies greatly.
However, the Garages, storerooms, and unfinished basements are generally not counted in usable spaces. So if you have a 1500 sq. ft. square-foot home with a 500 sq. ft. storeroom, this leaves only 1000 sq. ft of liveable space. Thus, analyze all these factors that affect real estate value before investing in a property.
If you wish to get notable returns on your investment property, it is advisable to move in line with all the latest and upcoming housing trends. Being aware of all the technological advancements will give your property an extra edge over those who have not upgraded yet.
For example, Mahima Group, builders and developers in Jaipur, has come up with a smart-home concept in its project Shubh Nilay. This facility allows you to control the electric appliances of your home with your voice command.
And as a result of this new update, their project is now the town's talk and is attracting many investors and buyers alike.
It might sound familiar that there is a lot of property sales at some point of the year, and sometimes the sale is not so much. The primary difference here lies in the people's ability to buy or sell an investment property.
In a typical case, when the economy is increasing, there will be more work opportunities, and people will earn more. As investing in real estate increases, people are more likely to invest in flats or villas. Thus, the rise in demand for property will result in hike in the property prices.
On the contrary, if unemployment increases, people will not consider real estate investments, and eventually the prices of property will also drop.
Hence, we can conclude that the factors affecting the property value are extremely important when buying or selling. Analyze the neighborhood comps, check the location, keep your property up to date, and keep in mind the economic factors of any area for a good ROI.
If you find it hard to do it all by yourself, then you can also get in touch with the professional builders who can quickly advise and guide you through the investment process.