5 Important Factors That Determine Property Value

During your house hunting journey, you might have come across several houses that are the same size and even the same layout with similar features, but the one is more expensive than the other.

You might even find a bigger house in a different area that is cheaper than a smaller property you have been looking at.

Size is most certainly not the only determining factor when it comes to property value and potential home buyers should approach the sale with this type of mindset.

Here are a few other factors that can influence the value of a property:

1 - Location

It might be a cliché, but always remember: location, location, location!

Location is the number one factor that will determine property value.

But there is a little bit more to it than that.

Every suburb has its own price range that will dictate the higher and upper-value houses.

Within those blocks, there are then certain roads where houses will be set at a higher value. These are houses that are situated in the most picturesque parts of the suburb and those that are close to amenities, like schools and restaurants. They are often modern and well maintained.

2 - Size

The second factor is probably the most obvious one and that is size. If you buy in the same area, you are going to pay more for a bigger house than a smaller one.

Properties are becoming more and denser due to the high demand in the buyer's market, so if you find a property that has a big yard and some breathing space, you are definitely going to pay more for it.

On the other hand, a huge property in an area where a lot of students and couples live, might not sell so well. These buyers rather look for smaller abodes with a lock-up-and-go option.

3 - Rooms and amenities

It doesn't matter what the size of the property is, a lot of the home's value comes from the breakdown of rooms and facilities it offers.

The top influencers are usually the number of bedrooms, bathrooms, and garages. Outdoor entertainment areas and office work spaces are also showing an increase in demand.

When it comes to rooms, however, it is important to remember that the lifestyles of buyers have changed.

Very few people are looking for a home with four bedrooms. Having dramatically more bedrooms might appeal to buyers, but it won't necessarily add more value to the home.

4 - Space and flow

Just like fashion and any other trend, architecture changes over time.

Keeping up to date with these types of trends will definitely help add value to your home.

At the moment, buyers are drawn to open-plan living areas where kitchens, dining rooms and entertainment areas all flow into one huge space.

Old-fashioned homes where these rooms are separated by doors or walls aren't as popular anymore. The current home buyer usually has a modern lifestyle and they are looking for a contemporary home to suit it.

5 - Technology

Even though smart homes are not as common yet, they are on the increase and millennials especially are eyeing homes with this type of potential.

In today's modern world, access to technology is a must and tech-friendly homes do not necessarily mean smart homes as such.

Homes should have enough charger points and power outlets - and in the perfect spots. Home automation for security systems is a big plus as well as eco-friendly options such as solar panels.

If a house is not situated in an area where the Wi-Fi signal is strong enough or where there is no internet connectivity, it could be a major deal-breaker for today's home buyer.