If you are looking to get an accurate valuation of your home, there are many different factors that you will need to take into account that could impact the price.
As a general rule of thumb, one of the best indicators of what your home is worth is the sale price of similar homes in your local area which have recently sold. Look for nearby properties that boast a similar property size, similar features and similar property type and see what the selling price was.
Keep reading to find out what will increase value in your home, and what steps to take to increase future offers from buyers.
What Affects the Price of a House?
1. Location
The ideal location for a house is subjective, but there are certain elements which make a location objectively desirable. Key factors of location include:
- Employment opportunities
- Quality of local schools
- Proximity to amenities such as, shopping and entertainment
- Nearby transport links
Areas which are well-located according to these criteria will typically be worth more than properties which are far from good schools, good jobs and local shopping or recreation opportunities. Similarly, proximity to certain undesirable features may make your home automatically decrease in value; this includes things such as pylons, noisy train lines or loud roads.
2. Property Type and Size
A home’s value tends to be estimated based on price per square metre, hence, the larger the property, the more expensive it usually will be. However, the price per square metre will vary depending on the area. More important than just the overall space itself is how much usable space there is in the property. For example, if you have an attic, a garage or a basement that is unfinished, this space will not be counted as usable square metres.
Liveable space will be more important to prospective buyers than overall space. Generally speaking the more bedrooms and bathrooms your home has, the more expensive the asking price will be. This will depend on other factors such as the property condition and layout.
Homes which offer outdoor space, be it a garden or a balcony, can typically charge more. Similarly, houses tend to be more expensive than flats as they tend to offer more space.
3. Age of Property and Condition
Homes which are in better condition tend to be valued more highly. Better condition, generally speaking, will consider how new the home is including fixtures such as plumbing, appliances, electrical wiring and the roof. The newer these fixtures, the longer they will tend to last which indicates less maintenance for prospective buyers. Buyers will be more inclined to pay a higher initial asking price if they can guarantee that they can save for years to come on the maintenance of the property.
There are some inherent property issues which could reduce the overall value of the property such as subsidence, damp, mould or weeds.
4. Local Property Market
There are certain factors which will be out of a seller’s hands. When you sell your property, the market conditions will affect your home’s value. For example, when you sell in a seller’s market (high demand from buyers, low supply from sellers), you will be more likely to get a higher price for your home. The seller has more power in this scenario and could negotiate price and sale time. However, if you are selling in a buyer’s market (where there are plenty of property options to choose from), you may need to set your price more competitively. If this is the case, you may need to adapt to what the buyer wants, be it negotiating the price, the timeline or even covering some small costs such as repairs.
Researching house prices in your area can help you determine what prices similar properties are selling for and can also give you an indication of whether you are currently in a buyer’s market or a seller’s market.
