There are a number of influencing factors to consider that can have an impact on the value of your property. This may vary as well depending on other factors involved. As your property is likely to be one of your big assets it makes sense that you want to ensure you are utilizing every avenue to maximize the value the best you can.
Property Valuations are an essential tool that can be useful in several situations, giving insight into how much the property is worth, whether you are looking to sell, refinance, or find out a realistic market value of a property you may be interested in purchasing.
Seeking a property valuer to assess how much your property is worth by inspecting the property, analyzing relevant information, and presenting all the data in a report that is detailed, clear, and consistent that will be based on the current state of the property. Therefore, it is important to do everything you can to prepare for the inspection or to understand what type of valuation you require depending on your situation.
While a property valuation may hinge on elements you are unable to change, such as the size of your house, land, and the location of the property. It can still be possible to make certain changes that will help your chances in boosting your property valuation.
The key factors that can impact a property valuation:
- Market Conditions
- Condition of the Property
Location is often the most important factor in determining how much a property will be worth. It is also important to consider what types of properties are currently selling for in your area so you can get an idea of what type should sell for more than others.
Taking note of how close the property is to shops, schools, public transportation, and other neighbourhood amenities. Is it a tourist destination spot? Is it close to the city centre?
The more accessible and popular the location of the investment is, the more valuable the property could be estimated at. The condition will also play a significant role in the value, if it has been updated or not, and if these updates were done recently.
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Size & space
Price per square foot is the determination of the market value for real estate properties. Usually, calculated by the total sales price divided by the property’s square footage. A property’s value can also be determined by the usable space. anything like garages, unfinished basements, and attics are not included in the square footage. Bathrooms and bedrooms which are frequently used can increase the value significantly. Linked to size can also be the land that is being occupied which may also factor into the valuation.
We all know the newer the property, the more buyers are willing to pay, since there are fewer renovations or upgrades to consider. Besides the age, the condition of the structure is a consideration to take into account. Older properties may have stronger ” bones” but not seem as appealing to the eye as newer properties that are appealing to the eye but have been built in a shorter time frame and may have more structural defects that would have to be repaired down the road.
Whether you are selling or buying a property, you still want to consider updating the property to best benefit the outcome.
Older properties especially might have outdated features throughout that could potentially decrease your property value when trying to sell. Kitchen and bathrooms are one of the main areas potential buyers look for in a property. depending on your finances, small improvements like a fresh coat of paint throughout the house, new tapware, cabinetry, and new flooring will give the property a new lease on life and can make an older property look brand new.
Another upgrade to consider would be the ‘curb’ appeal/ outer appearance of the property, as this will be the first impression for potential buyers and is another major factor that affects the value of a property.
In the real estate industry, there are many factors that impact the value of a property. These include interest rates, location, market conditions, and one major factor could be the supply and demand effect.
With high demand but a fixed supply, property prices will rise as more people will attempt to buy. Properties of larger existing structures that can be split into several smaller units or even building entirely new properties, will see an increase in supply. Saying this, when the supply can surpass the demand, prices will start to decrease in the market.
It’s important to know what a property is worth before buying or selling. A valuation will investigate internal and external variables which reflect the property’s true value. Having the knowledge of the property’s selling points and an understanding of the local property market can assist in making the right property decision for your financial situation. Contact us to see how we can help you make well-informed property decisions.
Adam Webster – LinkedIn Profile
With over 25 years of industry experience within the state, Adam Webster is one of the top property valuers in Victoria. He has appeared as a guest lecturer at numerous universities in Melbourne and has run career development seminars. Adam has extensive knowledge of the Melbourne property market, gained through his years valuing commercial, industrial, and residential properties throughout the metro and greater suburban area.