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Little-Known Factors That Affect the Price of Your Property

B97216016Z.120130816131648000GKI3I2PV.11It is important to know that there is a huge difference between property price and property value. Property value signifies its worth in the market, while property price is a transaction amount passing hands between the seller and the buyer.

Such transactions can be both above and below the overall value of the property. When you are thinking of selling a property, it is necessary to do an accurate valuation of the same. This will give both the buyer and the seller a reference point with regard the price.

Nonetheless, knowing about the factors that affect property prices is vital. Here are a few pointers to consider.

prooerty-viewProperty View

A beautiful view of the property is a big advantage. Buyers love to own a house that offers scenic views of the street or the sky when gazing out from the window, the door or from the patio.

A property with a great unblocked view will fetch a higher price as compared to another that doesn’t.

If your property promises something unique, such as a full view of fireworks every New Year’s eve, be sure to mention that to your prospective buyer.

Accessibility & Amenities

Property hunters will always pay premium prices provided they get the needed amenities and proper accessibility.

Proximity to subway stations, bus stops, schools, marketplace, and entertainment centres is always a good selling point.

Greater convenience for buyers translates to higher values and prices.

rental-propertyProperty Location

Where is your property located? It is a common observation that a property’s location can command a higher price based on demand. A property at a prime location in the heart of the city usually commands good rates.

Floor Level

The floor on which your property is located, will determine the rate it commands. Generally, higher floor levels are more desirable and command higher prices. However, there are a few exceptions.

Many people are superstitious about 4th and 13th floor, which many consider as bad luck. So, you are likely going to get lower prices for these floors.

However, in general, a higher floor level means fewer insects, lesser noise, fresher air, and a lot breezier and cooler environment.

Nearby Transactions

Recent transactions in the same neighbourhood can influence a property’s value. For example, if a property in the area is sold for $1 million, you are likely to get a similar price.

However, you can’t just quote a price blindly, because that $1 million apartment may have more facilities than what you are providing. Ideally, you should take such prices as a reference point and evaluate the features you are offering to calculate your selling price.

Neighbourhood Area

kentish town squareWhat is your neighbourhood like? Are there good schools nearby? What strata of society lives there? Places of worship in the neighbourhood may also help you to command good prices.

The neighbourhood’s development plan also plays a pivotal role when fixing the price of a piece of property. An up-and-coming area with basic available infrastructure is naturally high in demand.

Property Layout

Interestingly enough, the layout of your property also plays a crucial role, when it comes to the price. Buyers will usually want to customise a property once they’ve taken possession of it.

If such kind of flexibility is available, your home will command a good price in the market.

However, if the shape or layout of your property is such that customisations are impossible or prohibitively expensive, the prices will naturally fall. The presence of afternoon or morning sun in relation to the property is also crucial.

Available Facilities

real-lead3Many households today upgrade to condominiums simply because the better facilities compared to the regular properties. Why would people want to commute to the gym or public swimming pool when they can enjoy the same amenities in their home?

Exclusivity and security are also crucial factors buyers look into when comparing property prices.

Physical State

What is the present condition of your property? Is the paint peeling off? Are the walls cracked, damp and crawling with moulds? Is the plumbing system in disrepair?

In either of these cases, you simply cannot command a high price for your property.

When a buyer evaluates a property, they are going to determine how much additional investment will be required, to make it liveable. Therefore, the current physical state of your property is a vital consideration when determining its price.

Besides these crucial points, you also need to check the property development plan to give the buyers a glimpse of what can be constructed in the area surrounding the property. A good plan can help jack up the price of any piece of property.

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This entry was posted on April 23, 2014 by in Property Valuation.
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