
Factors that can affect the value of your property.
Home prices can differ substantially.
Factors range from economic and common sense, through to intangible factors.
Position – Position – Position
There is probably nothing that influences a property’s price more than it’s position. Including:
- Suburb / Street / Position on Street / Views & Outlook
- Amenities / Transport / Shops / Schools close by
Comparable Sales
Known as ‘comps’ these are properties in your neighbourhood that are comparable to your property, and have recently sold. Your agent may provide you with a CMA. This is a Comparative Market Analysis report to assist in valuing your home.
Compare with actual sold properties. Not list prices
Properties are only worth what people will pay for them.Comps must also be comparable to yours in position | age | condition | size | land | number of rooms and the like.
Market Performance
Supply and demand of housing has a substantial influence on prices. This can be quite geographical. Where homes in one area have a different supply and demand scenario, than in another area.If there’s an availability shortage home prices will normally rise.If homes in a neighbourhood are in low demand and properties are selling for less than the asking price, expect values to drop.
Property Condition
Maintenance is a major factor that can affect a home’s value. Two properties with identical position, size, rooms, and land, can have vastly different values. Because of their differing conditions.Well maintained properties, of course, demand a higher value.So it is important to keep your house well maintained and in good condition.
Potential for Renovation
This maybe minor or a complete renovation. Often buyers will want to do some degree of renovation. So the potential for the buyer to improve and personalise the property can have a bearing on the property price.
Interest Rates
Movements in interest rates can affect the value of property. Interest rates can have a huge impact on property affordability. Lower interest rates equal better affordability, which pushes up demand and in turn increases house prices. And likewise higher interest rates can have downward pressure on housing prices.
Infrastructure Projects
Infrastructure development in the area is another major factor that influences property prices.If there are major infrastructure projects happening close by, you will generally see a higher demand for property and in turn an increase in property values.
There are many more in-depth factors that can also affect the value of your property.
Please contact me for a free sales advice and planning session.
0447 555 870
Other popular real estate advice from Paul:
What to do if the sale of your home falls through
How to sell your house in a buyer’s market.
What should you do if your home passes in at auction
How to work through contingencies when selling your home
How to sell your home in a buyer’s market
Tips to make auction day a success
What do you have to disclose when selling your home
To sell by private treaty, auction or tender?
Questions to ask your real estate agent about selling your home
How to work well with your real estate agent
Checklist – Staging your home will present it at it’s very best
How much does it really cost to sell my home?
Real estate advertising schedules explained
Researching the Comp’s Comparative Market Analysis – CMA
Pricing strategies that will help you sell your home
How do I choose the best real estate agent?
The basic legal steps to selling your home
Comments 6
Pingback: Working Through Home Sale Contingencies | Real Estate Advice Hub
Pingback: What Should You Do If Your Home Passes At Auction | Real Estate Advice
Pingback: Why Isn't My House Selling | Real Estate Advice Hub
Pingback: How To Sell Your House In A Buyers Market | Real Estate Advice Hub
Pingback: How To Work Well With A Real Estate Agent | Real Estate Advice Hub
Pingback: Real Estate Advertising Schedules Explained | Real Estate Advice Hub