5 Factors That Affect Home Value - Avani Housing

5 Factors That Affect Home Value by Avani Housing

As much as it is challenging to buy a home, so also is the case with assessing its value in later years. We’re all eager to know how much has our house property appreciated in a given year, isn’t it? Many questions cross our minds. What are the factors that affect home value? Does the age of the house affect value? Everyone is curious to know how much their property is worth. To address these doubts, you must have a fair understanding of the various Factors That Affect Home Value. This will enable you to decide if the property is worth buying.

So, what are the factors affecting the housing sector?

5 Factors That Affect Home Value Location

So, what affects the value of a house? Location, of course! No matter how big or small a house is, no matter how alluring the amenities it offers, an investment into a house that doesn’t enjoy being at a good location may not fetch you the best returns on your investment. Go through the pointers below to assess the value that a particular location may offer: Apart from the area, other factors influencing a property’s value include:

1. 1. Connectivity and accessibility of the locality with other prominent areas of the city play a key role in determining the value of a home.

1. 1. A pertinent pointer is the employment opportunities that are around the locality. These days no one likes to travel far for work. The closer the workplace, the better it is. 

1. 1. How safe is the locality to live in? The neighborhood and the crime rate in the area are of significant importance when making a purchase decision. 

All in all, a developed location with good roads, municipal facilities (sewage, clean drinking water, etc.), and proximity to daily conveniences like markets, schools, banks, healthcare centers, entertainment options, etc. will always attract more buyers. 

Properties located in well-developed neighborhoods might be costlier to purchase, but they deliver better value for your investment in the future.

Infrastructure

The infrastructure of the locality and its neighborhood go a long way in increasing the value of a house. Who doesn’t want a house located in an area with proper roads, public transport facilities, bus stops, shops, etc., nearby? Besides that, proximity to social facilities which are frequently visited, such as markets, malls, banks, schools, entertainment centers, and healthcare centers, etc., is also critical to the value of a home.

Space and size

The space and size of a house is also one of the important factors that affect home value. When valuing your home, the total livable space of the house is assessed. The layout, overall square footage, and size of the rooms also influence the home value. 

When pricing your home, The price per square foot is determined by all of the factors listed in this article, as well as the acreage of the lot and the quality of the landscaping. 

Also Checkout: Best Place to Buy a House in Pune

Property Condition and Age

Does the age of the house affect value? Yes, it does. A new house will not require repair for a long time, so they are valued more. A house built for a couple of years will require maintenance and repair more frequently with obvious wear and tear. While age is important, it is the condition of the house that matters more- the quality of construction, the status of the woodwork, if there are any seepages, etc. A well-maintained house may be valued more, even if it’s a decade old. 

As a rule of thumb, expensive finishes fetch a higher valuation. Most buyers will pay extra for expensive hardwood floors, custom-made kitchen cabinets, high-end light fixtures, knobs and pulls, kitchen countertops, bathroom finishes, etc. 

Paperwork

This is one of the most critical factors that affect home value. The papers of ownership determine your right to sell a property. Documents such as Sale Deeds, Title Deeds, verifications, clearances, property tax receipts, build certificates, etc., must be available with the owner to prove that they are the legal owners of a house. Any buyer would check for these papers before signing on the dotted line. 

Any house where papers are incomplete or missing or awaiting approvals will certainly not be valued as it should be, no matter how good the location is; or how well it is maintained.

Final Thought

If you are looking to purchase a house or planning to sell yours, you must consider the above said factors that affect home value. To get maximum returns on your investment, consider these pointers when pricing your home or buying one.