The value of a property is driven primarily by the worth of the land it’s on, meaning in any given location, larger blocks will be worth more than smaller plots. But that’s not the whole story. Sam Funnell from Fine & Country Rugby explains what factors impact a property’s value.
It really matters where land is located, because not all land is created equal. Location is generally accepted as the key factor that determines the value of a property. Similar properties in different areas will normally command different prices. People usually want to live close to where they work and where they can enjoy their free time. Lifestyle factors, such as accessibility to public transport, shops, schools and restaurants, have an impact on values, as will the perception that some areas have a better reputation than others. The more popular and accessible an investment location is, the more valuable the property will be.
The age and condition of a property will also impact on its value. A well-maintained or new home will generally be more appealing than one that needs to be updated. More buyers are willing to pay a higher price for a property that doesn’t require major renovation. Experienced buyers pay attention to the less obvious things that may require attention, such as electrical work and plumbing.
The architecture of the property will command a different price, as will the style. Semi- detached, terraced, and detached properties appeal to different segments of the market. Properties that have character and special period features are harder to come by and more sought after. They also tend to grow faster in value than a new-build.
The style of the property often determines the usable space, such as the number of bedrooms and bathrooms, also impacting on the value. A four-bedroom house is likely to sell for more than a two-bedroom house. Keep in mind, however, that the functionality of a home’s layout is always important. Features such as extra bathrooms and outdoor entertaining areas can all have an impact on property value. In a busy city, parking opportunities also become a critical factor. In these areas, off-street parking spaces add enormous value to a property
Like with most things in life, supply and demand for property determines value. This is where macro factors affect the value of each property. The demographic composition of the population is significant in determining how real estate is priced and the types of property that are in demand. Other external factors, such as the performance of the economy and interest rate levels, also play a part.
While there are a number of factors that can predict the price of a property, ultimately the value of a property is how much a buyer will pay for it, and that can often be a personal thing.
For advice on selling or buying property, please contact Sam Funnell on 07714 515484 or visit www.fineandcountry.com