When you plan to buy or sell a residential property, knowing its value is crucial to get a good and honest deal. Usually people think the value of house or unit is based on one or two things, but there are several factors that contribute to a property being highly attractive for buyers and investors. As a residential property owner who is ready to sell or someone who is looking for a home or a property for investment, you should know what factors influence a property’s desirability in the market. Thus, here is a complete guide by expert property valuers in Australia outlining the most important characterises that make a house or unit valuable.
Property’s Layout & Size
These two factors greatly increase or decrease a property’s value. The rate of a house or apartment is determined by the price per square foot. This metric is the best for valuation of residential properties whether you are buying or selling it. In addition, the number of living rooms, bathrooms, kitchens and the general floor plan of a residential property all impact its market value.
If a house is big but its floor plan is poor, its value will not be the same as a house or unit with less space but better layout. Any property up for sale or rent should be practically designed and to get the best price it should meet the requirements of potential buyers or renters.
Renovations, Refurbishments and Additions
Before selling a property or putting it up for leasing, owners make improvements to increase its value and curb appeal. For buyers and renters, a property that is renovated or refurbished to make living in it easier and comfortable is valuable and desirable. For example, a house for a single family that has the space and improvements to make it safe for children will be better than a house which lacks the necessary additions.
Although the additions and renovations don’t add the same value to the property as the money spent on them. But, they make a positive difference and attract more buyers and renters.
A property in good and clean condition will always attract more buyers and renters than a property that is poorly maintained. During inspections, property valuers usually check the property’s structural integrity, cooling or heating systems, plumbing and other things to decide its worth. It also helps property owners know what they need to do to increase their property’s worth. For example, if a house has an obsolete floor plan and the buyers gets its changed to a modern one then the property’s desirability increases which impacts its values greatly.
It is a no brainer that newly constructed residential properties have more value than used house and units. A property’s age impacts its value because the new homes require less repairs and maintenance. Plus, they guarantee better structural integrity and their floor plans are more attuned to modern trends.
Property Market Condition
Besides the property’s condition, the state of the real estate market also plays a major role during the valuation process. Due to the outbreak of COVID-19 pandemic in the year 2020, the property market was seriously impacted the values of houses and units dropped. However, in 2021, the market has regained mobility which has also affected the prices of residential properties across Australia.
Neighbourhood & Surroundings
Naturally, a property in a safe neighbourhood with families and established communities will have more value than a house or unit in a mediocre neighbourhood. The image, people and several other things impact a neighbourhood’s desirability. For example, a well-built house’s value in a neighbourhood with multiple vacant homes, graffiti, high crime rate etc. will suffer because of these factors. Neither renters nor buyers are usually interested in investing in such properties.
It is common knowledge that a property’s location is a major factor that increases or decreases its desirability. Well-located properties always have higher market values than properties that are good but located in areas that not as looked-for. For example, residential properties in Sydney are valued more than properties in other metropolitan cities like Brisbane, Adelaide or Perth because more people are interested in living in an international city.
The Bottom Line
When you buy or sell a property, it is essential to know its true market value. The factors mentioned above impact the desirability of properties tremendously and you should know them to make an informed decision. Additionally, hire property valuation professionals in Australia, if you lack the knowledge and expertise to evaluate the right price of a house or unit.