Factors influencing Property value
Category Expert Insight
A property valuation is the process used to calculate the market value of a property.
The following factors play a role in the valuing of a property:
1. Location, location, location
The location has the biggest significant impact on a property's value. Location does not only refer to the neighbourhood but where the plot's situated, it's position and its surrounding areas.
2. Surrounding amenities
The amenities located in the property's surrounding areas play a role in its value, as people want to live in an area that offers convenience. The property's proximity to schools, hospitals, public transport, entertainment and business hubs are also factors influencing property value.
3. Size Matters
The size, layout and amount of usable space a property has impacts its value.
4. Age of home and its amenities
Newer homes tend to have a higher value because the electrical work and plumbing is newer and so it will have a longer lifespan than that of an older homes inner structure. Another aspect affecting value is the number of bedrooms, features, finishes and fixtures of the property.
Properties situated in prime, centrally located neighbourhoods tend to be valued at a premium. This along with the local amenities plays a major role in establishing the value of a property.
6. Property market
The conditions of the local and national property market can affect how much a property is worth. Factors that influence value, are the number of properties for sale in a district, the number of interested buyers and the average selling price for similar homes. As well as other economic factors such as interest rates, inflation and other costs that impact the general consumer.
7. Sales price trends
The sale price of comparable local properties that have recently sold in an area can push the value of a property up or down.
Knowing the value of your property and what can and can’t be done to improve it, is essential in setting your property’s sales price right. The right price, especially in the current SA property market, can make all the difference in how long it takes to sell your home and whether you will get an offer.
Author: Seeff Head Office