Working out the accurate value of your home is never easy. Essentially, a home is worth whatever someone is willing to pay. Yet you don’t want to give it away, or overvalue it and scare potential buyers. Thus, knowing the factors that determine house prices and combining them with current research can help you get a better idea of property values.
Assessing the Location
The location of the home plays a huge part in price. This is not just bound by the city or town, either. Each individual district can impact price, and even the street itself. This is generally determined by lots of smaller factors. There could be great schools nearby, or the area may have a very low level of crime.
It is worth noting that these areas change over time. Improvements in public transport can put up the value of a property as demand increases. You may find a new industry moves into a town and pushes up house prices, or leaves and brings them down.
Trends and Markets
A range of trends and markets can impact the price of a house. At the top level is the economy of the country. If jobs are plentiful and interest rates are low, more people have money for deposits and the ability to lend. Thus, house prices rise.
Generally, housing markets can be broken down into buyers’ and sellers’ markets. A buyers’ market is when there are lots of properties, but very few people buying them. Thus, they are at an advantage.
A sellers’ market is when the opposite is true. There are plenty of buyers, but few properties. This puts the advantage to the seller and means that generally, they can sell to the highest bidder, increasing prices.
These factors all change, and there is no one-size-fits-all answer. You may be in a buyers’ market in one town, and a sellers’ in the next. That is why it is advisable to get expert opinions. If you want to enlist the help of an online Value My House service, they can often be done instantly. The benefit of these services is that there are no hidden fees, and you can receive them alongside a cash offer.
The Type of House
The type of house will also increase its value. Detached houses are always worth more, with semi-detached and terraced less. Houses also come in many different types. Old-period homes with features may be worth more than new builds of a similar size.
Of course, larger floor areas are worth more money. Yet, bigger is not always better when it comes to demand. If you are in a city, you may find young professionals hiking up the demand for two-bedroom apartments as opposed to three-bedroom family homes.
Finally, the condition will have an impact. A modern kitchen or bathroom will push up the value of a property. A house that is dated and needs major renovations will be worth less.
If you want to sell, do some research yourself. Once you have a good idea, check your findings with a property expert. This will let you find the right price at which to put it on the market.
