Do you have a property that you want to sell at the best possible price? If so, then you’re probably wondering how to achieve such a price.
Besides clever marketing and selling skills, some factors affect a property’s value. Such factors may have a direct or indirect influence on the property’s market price, depending on how you handle them.
What are these factors, how can you control them, and can you even control all of them? That’s our topic for the day.
In this article, we’ll discuss what affects your property value, covering everything that increases and decreases its price.
What Are 10 Factors That Positively Impact the Value of Your Property?
In this section, we’ll list 10 factors that favourably impact the value of your property. We’ll also explain how and why each factor causes that positive impact.
Whether you’re looking to invest or purchase a property for yourself, the location plays a significant role in the property value. A location can be considered attractive when:
- The view around the property is scenic and natural
- The neighbourhood is clean and noise-free
- The location isn’t deserted in the middle of nowhere
It’s not easy to have a property location that has all the location advantages. However, the more boxes it ticks, the more value it’ll have.
You’re more likely to move into a move-in-ready home than to purchase a property that needs renovation. A property in a good state will:
- Be more appealing to potential clients
- Require minimal renovation and preparation
- Speed up the selling process, as not much time will be wasted to repair the property
If you’re the property owner, make sure that most, if not all, repairs are done before you sell it to someone else. If you’re the buyer, keep an eye out for damaged structures, like old paint, major plumbing and electricity issues, cracked walls, rusty fences, etc.
The usable size of the property is a direct contributor to its value. The market value of a property is often determined in terms of square per metre. However, keep the following factors in mind:
- Depending on other factors, the price per square metre isn’t always the same, even if we have two properties of the same size
- The changes in the neighbourhood around the property can also increase or decrease the price per square metre
Because of that, it’s normal to find a smaller property that’s valued a lot more than a considerably larger property because other factors in this list are more in favour of the smaller property.
When you properly upgrade your house, you automatically raise its value. This is especially useful in older properties that could make use of such enhancements. The upgrades we’re talking about include:
- Renewing the exterior and interior paints of the property
- Bathroom and kitchen renovations
- Increasing the number of bedrooms
The more you invest in a property, the more value it’ll have. Just make sure not to overspend on rather luxurious upgrades that aren’t practically useful and may not provide a good return value.
The more energy-efficient a property is, the less the resident will have to pay for electricity. As such, investing in such energy-saving features can increase the value of your property. Those features include but aren’t limited to:
- Energy-efficient lighting and HVAC system
- Proper insulation
- Eco-friendly roofing materials
- Solar panels
In addition to the increased value and reduced electricity cost, energy-efficient properties can reduce carbon footprints. You’ll be raising the value and contributing to help the planet.
It’s hard to deny that appearances do matter, and a good-looking property would be more appealing both to a potential resident and a real estate investor.
That applies both to the overall appearance of the property and the garden (if present). Here are some of the factors that can make a property more aesthetic:
- A well-maintained garden
- Good quality outdoor seats (if present)
- Small ponds/lakes, trees, bird feeders, pergolas, etc.
- Well-maintained fences and walkways
- Good-quality roof shingles
All of these factors show that decent money was spent on improving the overall appearance of the property, which means that clients are more likely to buy it because they won’t spend too much to improve the aesthetics of the place.
Two properties next to each other in the same neighbourhood can have different values even if they’re identical in appearance and size to each other. The reason behind this is the quality of materials used to construct the property. High-quality materials ensure:
- The safety and structural integrity of the property
- The reliability of plumbing and electricity
- The durability and longevity of the property
The final finish also plays a considerable role in deciding the price. A well-constructed property with rushed final touches may hit the appearance and the value of the property.
Services and other amenities are a major contributing factor to the value of a property. The further a house is from such amenities, the harder it’ll be for its residents to restock what they need, and the lower market value such a property will have.
Typically, you should be looking for facilities like:
- Grocery shops and markets
- Hospitals, police stations, and fire stations
- Garages, petrol stations, and other car servicing facilities
Have a look at the amenities an ideal property should have here.
The proximity of public transportation and schools plays a significant role in property value raising.
Whether you own a car or not, having access to buses, train stations, underground railway systems, and other transportation methods can give you the ease of mind if the car is unavailable for any reason.
An accessible property can have increased value if:
- It has nearby schools that residents can reach with ease
- It has good-quality tarmac that cars don’t struggle to drive over
- It allows the residents to easily move around using various public transportation
Keep in mind that even if the nearest school is a considerable distance away, reliable and easily accessible transportation can still allow the property to retain its value.
Crime prevalence is a significant property value-controlling factor. It’s not uncommon for perfectly maintained properties to be left untouched just because the neighbourhood isn’t safe enough for families and their children.
A low-crime neighbourhood can raise the property’s value for the following reasons:
- Peace of mind, as people are more likely to buy properties where they can ensure their safety
- These properties are family-friendly, which makes them often targeted by families
It’s good to check the crime rate of the area you’re willing to buy a property. Besides asking the locals, there are various tools online that can help you do so.
Now that we understand what can raise the value of your property, let’s have a look at what can have a negative impact on it:
An inconvenient property location won’t only reduce its chances of being bought, but it’ll also reduce its market value. A location can be inconvenient if:
- It’s deserted and away from city centres, malls, or any areas where people usually gather
- It’s not overlooking any special views that make it stand out.
- It’s not easily accessible by public transportation
It’s rare to find a property where all location inconvenience factors are present. However, the more of these factors, the less value the property will have.
The property’s value may take a hit if it’s in bad shape. Normally, a property should be well-maintained enough for the potential resident to not have any complaints. A property with subpar conditions will:
- Cost you a decent amount of money to prepare for residency/resale
- Take a considerable chunk of your time to prepare, which is critical in the real estate business
- May affect your resell process if the client refuses to buy a property with extensive repairs
Keep in mind that it’s challenging to find a property that’s devoid of any issues. However, keeping that to the minimum ensures the best possible value of the property.
Structural problems don’t only make it harder for any resident to make use of the facility; they can also be a safety concern. These structural problems include:
- The presence of holes in the wood/drywall
- The lights are flickering randomly
- Random cracks that appear with no particular pattern
- Considerable plumbing issues and slow drainage
- Windows get stuck, and doors don’t open
- The presence of dry mud tubes on the property’s foundation
There are other structural alarms that should raise your concern. However, the property isn’t considered in a bad state until many of these structural problems are present simultaneously.
Lack of modernisation and upgrades can potentially lower the value of a property. That applies even if the property is in a good state and has good structural integrity. A non-upgraded property has reduced value because:
- The property loses a potential increase in value if it doesn’t get any upgrades
- A potential client may steer away from the property if they find out it needs a lot of work to be modernised
It’s important not to mix between modernisation and classic home styling. You can still apply modernisation to a classic home interior, like upgrading plumbing, ventilation, and insulation.
A property may be too close to dangerous environmental factors. Such factors may include:
- Excessive air pollution caused by industrial activities and traffic congestion
- Toxic waste sites that pose a health hazard to the property’s residents
- Areas that are more likely to experience natural disasters like tornadoes and floods
Such factors and more could make a property less desired by buyers and investors, which leads to an overall drop in its market value.
Facilities and services are among the detrimental factors that affect the value of a property. Lack of such services would lead to:
- Difficulty in reaching schools, which is necessary for every property that has a family
- Difficulty in buying much-needed groceries/medications and other important daily supplies
- Difficulty in socialising, since areas with few facilities tend to have fewer residents than other live areas
Having a car or a vehicle that gets you to such facilities and services may make life easier for you. However, the fact remains that having a vehicle isn’t a given privilege and that lack of accessibility will reduce the market value of said property.
Crime and safety concerns can quickly reduce the value of a property. One would be fearful of various crimes like burglary, theft, drugs, and more. Such crimes reduce the property value because:
- They compromise the overall safety of the property residents, especially if there are children
- They reduce the quality of life, as community engagement would be reduced, and social activities would be limited
- They often result in an increased presence of police officers, which translates into a tense atmosphere among the residents
- They cause safety concerns in nearby schools, as maintaining the safety of students becomes difficult
Crime rates will diminish the market value even in near-perfect properties. Until the crime rates are reduced, it’s much less likely for such properties to sell.
Road accessibility is indeed useful, but that doesn’t mean being near congested roads or busy highways. Noise pollution can make life much harder for the property residents because:
- Constant noise creates annoyance and causes people to be eccentric and irrational
- Excessive exposure to loud noises above certain levels can actually lead to hearing loss
Busy and congested roads aren’t the only reason for noise pollution. Some neighbourhoods, despite not being close to roads, are a lot noisier than others.
Such noises can drive buyers away and reduce the value of the property.
How would it feel like to reach your house only to end up parking a few blocks away? Whether it’s because of bad design or overpopulation, properties in some areas don’t have enough parking space to accommodate all of their residents. This results in:
- Excessive walking to go back home if you’re parked far away
- Constant disputes between residents as they fight over parking spots
- Excessive car fume emissions as they circle around while looking for parking spots
Because of such reasons, a property with insufficient parking spaces would feel less appealing to buyers.
Properties with bad history or stigma may have a reduced market value. People wouldn’t want to live or invest in a property where something bad or illegal used to happen. Examples of those are:
- Properties that had a history of illegal activities
- Properties where condemned individuals used to live
- Properties that residents constantly move out of for no obvious reasons
A property falling in a similar category may render buyers apprehensive. Even if they can’t exactly pinpoint why such a location has a negative reputation, the market value does end up going down nevertheless.
You can raise a property’s value by making the proper kind of improvements and renovations. These include:
- Fixing any damage to the property
- Ensuring that the HVAC system is up-to-date and damage-free
- Repairing any critical foundation issues
- Handling plumbing and electricity concerns
- Applying fresh coat paint on the inside and outside of the property
- Cleaning/replacing any rusty metals like fences and drainage tubes
- Renovating the garden (if applicable)
The room that adds the greatest value is arguably the kitchen.
While not all renovations recoup all or even some of their costs, kitchen upgrades almost always increase the property’s value. That’s because the kitchen remains one of the most used rooms in most properties.
The attributes with the most impact on a property value are the location, size, and property condition.
- An appealing location can raise the value of a property even long after it’s constructed
- The size directly affects the value because properties are often charged by price per square metre
- A property with decent condition will be a lot more likely to be sought after by clients
In this section, we’ll provide some valuable pointers to sell your home and make it more appealing to potential buyers. Your general approach would be to fix any structural issues, ensure the integrity of the foundation, and improve the overall appearance of the property.
Here are some pointers on how to do so:
- Prioritise plumbing and electricity
- If you are to improve any rooms, prioritise the kitchen and the bathroom
- Work on the aesthetics of the house
- Repair any damage to the fences/gates
The short answer is yes. Decorating your home is often worth your while because they make the house more appealing. Make sure you use neutral colours that are widely accepted by most people.
Fresh paint coats give an impression that the property is being taken care of, which makes it more likely for potential clients to buy it.
You should refrain from repairing minor issues that cost you money but won’t increase the market value and, sometimes, not get noticed by clients at all.
Minor electricity or plumbing issues fall under such a category. If there’s no major issue, then spending money on such repairs will be a waste of time and money.
Other things you shouldn’t repair when selling a house include:
- Old or ageing windows
- Old appliances
- Outdated or old floor coverings
Since you can’t control some factors like the location and the neighbourhood, you should do your best to improve the property’s condition to eventually increase its value.
Unfortunately, that’s easier said than done, and that’s why a professional property care service could be helpful. With Watertight Homes, you’ll get the house care you need to increase your property’s value without spending too much renovating unnecessary categories. Contact us now!