When it comes to assessing the value of your property, some factors are within your control and others are not. Here’s our guide to 5 key things that affect the value of your home – and how to get a realistic picture of what it’s worth.
Economic factors
Multiple economic factors can influence the value of your home. One of these is interest rates: if they rise, mortgages become more expensive, and this can deter buyers, as it becomes relatively cheaper to rent. Higher interest rates can also push up the payments for people with existing mortgages, forcing some of them to sell. The result? More houses on the market, but fewer buyers, causing house prices to fall. Other economic factors influencing the value of your home include increased unemployment and/or restricted wage growth.
Space
The amount of living space in your home will have a big impact on its value – so if you have an extension or loft conversion and your neighbours don’t, you can generally expect (all other factors being roughly equal) that your house will fetch a higher price. Garages and basements also add real value.
Neighbourhood comps
Neighbourhood “comps” are comparable houses in your area. Of course, no two homes are exactly the same, but you can get a fair idea of what you’ll get by looking at what similar homes in your area sold for. Don’t just look at the size of the other homes – look at their location; for example, if your home is close to the local shops, compare it with others that have a similar proximity.
Location
Anyone looking to buy your home will be hugely influenced by what is in the surrounding area. If they have children, or are planning to start a family, the proximity of good schools is a major factor. Shopping centres are also important, as are recreation opportunities ranging from indoor sports to parks and beaches. Job options in the area are also a key factor, as are the general demographics of your area. If it’s seen as upmarket and desirable, that will increase the value of your home. Equally, if your neighbourhood is perceived as going into decline, you can be powerless to do anything about the negative impact this has on the value of your home.
Condition and age
Newer homes often have a higher value than comparable older properties, because potential buyers can be deterred by the fact that older properties typically need more maintenance. It’s not just about visible factors such as a deteriorating roof or damp patches; they’re also worried about unseen factors such as electrics and plumbing. Older properties are also likely to need more cosmetic work, meaning they present a bigger project when compared to a newer home. If you’re selling an older property, you’ll need to factor in the way in which condition and age affect its value and adjust your expectations accordingly.
Another option
Many of the factors we’ve looked at here are out of your control; with others, such as the amount of space or the condition of the property, you’ll need to weigh up whether it’s worth spending time and money improving its value and whether you will recoup that when selling the property. If you want a quick sale, there is another option: Property Buyers Wales will offer you a fair price for your property based on many years’ experience in the property market. We’ll stick to the price we offer you and we won’t expect you to spend any time or money improving your house. We’ll take all the stress of selling the property off your hands and will work to ensure you have the money in your bank account as quickly as possible. Get in touch today to find out more.
