Property value is the value of a particular home. Mostly, it means the price buyers are willing to pay for a house for sale. It’s a very subjective value that can be affected by a lot of factors. While the land beneath the house might appreciate over time, the property value is more likely to do the opposite.
Before you make changes to your home, you are highly recommended to know about some of the factors which can affect the value of your home largely. With this knowledge, you will be able to sell your house before it depreciates or find out whether the home you are buying will appreciate in value.
Top 3 Factors That Determine the Property Value
Some people, especially first-time homebuyers, often focus their eyes on the style, layout and function of a house, with the idea that these elements will lead to an increase of property value. They are probably right. However, the characteristics that actually have a big impact on property value are location, demand and supply.
• Location: The location of a house is of huge importance and you should never overlook the difference it can make. A prime location boasting pleasant surroundings, convenient transportation and excellent development potential is sure to add much value to your home.
• Demand: You have to admit that the price of your house will vary depending on how many people want to buy it. Well, that is the demand. When your house is highly demanded, you can surly sell it out at a very good price. Otherwise, the property value will be much lower.
• Supply: High demand does not always mean high property value. Supply is also a factor that could affect the price of a home. Even though there are plenty of people interested in buying your house, its value might decrease if numerous similar options are available in the market.
How to calculate property values?
When you are considering marketing your existing home or just curious about how much your house is worth, you will need to calculate property value. The process of the calculation is a little bit complicated. Fortunately, lots of websites provide free property value calculators for you to estimate the current market value of your home. If you insist on calculating by yourself, follow these steps:
1. List out all the important attributes of your house like the number of bedrooms & bathrooms, the style & interior decoration and the total square footage etc.
2. Search online and locate recent sales to get information about the prices for properties situated in the surrounding areas. And try to find out several similar houses that are for sale or have been sold recently.
3. Draw a table to compare their addresses, prices and all the other major characteristics. And then make a comparison between your own home and all these properties. Add value to your home for extra rooms or amenities or lower the price for things it does not feature. Then you will get an estimated price.
4. To get a more accurate result, you will need to take more details into account and make some small adjustments to the property value.
Tips to Increase Your Home’s Value
Everyone expects to sell out their items at a relatively higher price. It is quite understandable. As a homeowner, you must be happy to increase property value of your home before selling it. Read on to equip yourself with some useful tips on increasing your home’s value.
• Paint your house to make it look more beautiful than before.
• If possible, you can redo the kitchen or improve the roof as well.
• Plant a few more trees and flowers in the yard to make your house attractive and the living environment pleasant.
• It’s also a great idea to fence in your backyard or increase the density of the plants, as buyers seem to be willing to pay a higher price for a more secure and private backyard.