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 its position. Including.
Suburb / Street / Position on Street / Views & Outlook
Amenities / Transport / Shops / Schools close by.
Comparable Sales
Known as Comps. Properties in your neighbourhood that are comparable to your property, & have recently sold. Your agent may provide you with a C.M.A. 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 have 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 positions, size, and rooms, 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 may be a 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. Likewise, higher interest rates can put downward pressure on housing prices.
Infrastructure Projects
Infrastructure development in the area is another major factor that influences property prices. If there are majorinfrastructure projects happening close by, you willgenerally see a higher demand for property and in turnan increase in property values.
There are many more in-depth factors that canalso affect the value of your property.
Please talk to us for a consultation.
