What Factors Determine The Value Of Your Property?
There is a time when many of you will consider the daunting task of investing in real estate, whether it is building your dream home or purchasing a property.
Along with your budget, there are many elements that you will have to consider to reach that decision.
One of those key elements would be ensuring you receive the greatest value for your investment. Some considerations are:
Location, Location, Location
This is the number one factor that determines the value of your property. Is the neighborhood you are considering new and up and coming? If it is, look at the surrounding homes in the neighbourhood, as they will help to determine the value of your home. It may be a property like Blue Waters 25, within a mature and established area where most of the homes have retained their value throughout the years. Is the property on a ridge with excellent views? For many prospective purchasers, this is a key feature. Are the surrounding dwellings in the neighbourhood of the same calibre of property or does the neighbour collect refuge as a hobby? Is the property located with easy accessibility to transportation? These are all questions which tick the box as to how valuable your real estate may be.
It’s All About The Design
If you decide to build, when designing your home, the layout and flow of the property will be particularly important should you decide to sell the property or enter the rental market. Plover Court 156 is a great example of a well-designed house that has maximized its floor area with a functional kitchen, attractive bathrooms and comfortably-sized bedrooms. If your property has these sought-after elements, it would be in high demand should you decide to sell/rent your property at a later date. Also consider including a room on the lower level if you are building a duplex. An additional room can be used as a bedroom, office or media room. Another attractive consideration is building your home with green/environmental components in the design, such as photovoltaic (PV) panels.
It is also advisable to design your property with an allowance for future expansion, whether for you as the current homeowner or for a potential purchaser. It is important to include some degree of landscaping to soften the curb appeal of your property. An attractive curb appeal triggers an immediate response from a purchaser before they enter your home, and makes it a more saleable commodity. The rule-of-thumb is typically not to let the footprint exceed 1/3 of the land size. This would leave enough space for landscaping.
Balancing Your Upgrades
Should the property you purchase require upgrades, before making those improvements, it is highly recommended that you seek advice from your real estate agent. Upgrades that are professionally and tastefully done, can add some degree of value to your property. However, you need to be careful about over-improving your property. Although you may choose superb personal finishes to suit your particular style, this may not always transfer to a higher sales value. Remember your value is influenced by surrounding properties and current market conditions.
Paying Attention To Market Conditions
Market conditions are key in determining value. To a large extent, the value of the home is currently driven by what the average purchaser is willing to pay for a property, rather than what we would consider a ‘bricks and mortar’ or replacement cost value.
Swayed by Charm?
There may be special circumstances where the uniqueness of the owner’s property appeals to a willing purchaser who would pay over the market price. The potential buyer may be sold on its charm, location or another special aspect. However, please note that a special circumstance does not always influence the value of the property. An emotional connection to property does not determine its market value, unless a ‘special purchaser’ has the same or similar connection.
Being equipped with this knowledge at the beginning of the real estate process, should result in more realistic expectations for both potential buyers and homeowners.
Should you need any further advice on what to look for when you are ready to consider investing in real estate, please feel free to contact me at (246) 836-4313 or email@example.com.