Whether you’re considering buying, selling, or are curious about your property’s worth, you’ll want to know your home’s valuation. Understanding the factors that influence its valuation is key. Read on for a breakdown of what is taken into consideration by appraisers or estate agents when determining the value of your property.
Location
The location of your property is a very significant factor in determining its value. The same property could vary greatly in price depending on where in the country it is. Proximity to schools, parks, public transport, shopping centres, and amenities also play a role. Additionally, factors including the type of neighbourhood, crime rates, and overall infrastructure can impact house value.
Size and layout
The size of your property, including both the land and the house itself, is a fundamental consideration in its valuation. A larger home, or one with more bedrooms, will have a higher value than another in a similar location. The property’s layout also matters. An efficient and functional house layout can increase value, while more unique designs may deter buyers.
Condition and age
The current condition of your home significantly affects its value. Well-maintained properties with modern amenities generally achieve higher sales prices. A home in need of repairs or upgrades will sell for less, to compensate for the fact that renovations will be needed. Age is also a factor, as newer properties can be valued higher due to their reduced maintenance requirements.
Upgrades and renovations
Investments in upgrades and renovations can positively impact your home’s value. Features such as updated kitchens, bathrooms, flooring, and energy-efficient upgrades may increase desirability and resale value. However, it’s essential to consider the cost versus the potential return on investment for each improvement. We’d advise against completing upgrades to your property, if the cost is considerably more than the increased property value.
Comparable sales
Property valuers may look at comparable sales to determine a property’s value. These are recently sold properties in the same area with similar characteristics, such as size, condition, and amenities. Analysing comparable sales helps establish a baseline for pricing and ensures that your property is competitively priced in the market.
Market conditions
The state of the housing market plays a significant role in determining property values. In a seller’s market, where demand exceeds supply, prices tend to rise. On the other hand, in a buyer’s market, where supply exceeds demand, prices may stagnate or decrease. Economic factors, interest rates, and regional trends also influence market conditions.
Economic development and infrastructure projects
The presence of local economic development projects, such as new businesses, infrastructure improvements, or transportation hubs, can boost property values. Conversely, factors like noise pollution from nearby construction projects or infrastructure may have a negative impact on value.
What to expect at a valuation appointment?
The valuer will come to your property and discuss your needs. They may ask you some questions before taking a look around the property with you. The valuer will take measurements to understand room sizes and layouts. A further chat will discuss comparables with other properties on the market or recently sold.
What will you be asked during a valuation?
During the valuation, you may be asked what attracted you to buy the property. Whether you would prefer a quick sale or to achieve the highest price possible will be asked. There will also be an opportunity to enquire about whether renovations or home improvements will increase the property’s value.
Some of the factors determining a property’s valuation are out of your control. Others, you can have an influence on. Property valuation is not an exact science. It is a complex mix of various factors that contribute to the overall market value. Request a property valuation with us.
