| Factors that can affect the Value of Your Property
The price of a home can vary substantially depending on a range of factors, from economic and common sense to intangible ones.
Position is Key
There is nothing that influences a property’s price more than its position. Factors that impact a property’s position include:
• Suburb, street, position on street, views, and outlook
• Proximity to amenities, transportation, shops, and schools
Comparable Sales
Comparing recent sales of comparable properties in your neighbourhood is important when determining the value of your home. Your agent can provide you with a comparative market analysis (CMA) report to assist you in valuing your home. It’s crucial to compare with actual sold properties, not just list prices, as properties are only worth what people will pay for them. Comps must also be similar to yours in terms of position, age, condition, size, land, and number of rooms.
Market Performance
Housing supply and demand have a significant influence on prices. This can vary geographically, where homes in one area may have a different supply and demand scenario than those in another. If there’s an availability shortage, house prices will usually rise. Conversely, 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, sizes, rooms, and land may have vastly different values due to their differing conditions. Well-maintained properties typically demand higher values, so it’s essential to keep your house in good condition.
Potential for Renovation
Buyers often want to do some degree of renovation, so the potential for buyers 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 a property. 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 nearby, you will generally see higher demand for property, and in turn, an increase in property values.
There are many more in-depth factors that can affect the value of your property. Reach out to us for a consultation.
Disclaimer: Although all care is taken. We do not give any warranty whatsoever to the accuracy of any content. This is not meant to be financial or professional advice and is only of general nature. You must seek professional advice before taking any actions. The above information comes with no warranties whatsoever. We take no responsibility for any actions you may or may not take. All content is of general nature only and is NOT to be taken as advice whatsoever