Expert Article |Factors that Affect Property Value
Location, Location, Location!
The location is the main factor that affects property value, and the value of a home differs substantially depending on the city, subarea, or street it is located on. Desirable location traits such as being near a skytrain/bus, or close to a city centre or schools will result in a higher value. Alternatively, if your home is on a busy street or in an area with high crime/unemployment then this will lower the value.
Condition of the Property
The condition of the property and how well it is maintained is another factor that impacts property value. While cosmetics of the property play into this, upkeep such as roof, hot water tank, and furnace maintenance are also considered in the condition. If your home has had a history with wind, fire or water damage, foundation issues, infestation, or matters of this sort then this also negatively affects value.
Style & Design
This can be separated into two categories:
The layout, size and age of the property will affect the value of a home. If your home is newer, bigger, open concept, or has added value features like extra parking or storage then this will impact the property value positively. Rental capabilities are also considered valuable, as they open up the buyer pool to investors or buyers in need of a mortgage helper.
Cosmetic factors such as upgrading the flooring, countertops, vanities and paint in a way that is in line with today’s desired style impact the property value positively.
Buyers have a preference for properties that are move-in ready, and it is found that the highest return on investment spots for renovations are the kitchen and bathrooms.
Exposure & The Realtor You Choose
The amount of exposure that your home receives will directly correlate to the number of offers that you receive. Your realtor is there to implement marketing systems that reach as many buyers as possible, which will ultimately result in the right buyer coming along to write an offer on your home.
A realtor that is exposing your home to its full potential, versus someone that just puts it on the MLS and expects it to sell itself, will make a huge difference with regards to what your property sells for.
How you choose to price your home will contribute to how much exposure your home receives.
The market value of your home can be indicated by the comparable sold, active and expired properties in your neighbourhood and surrounding areas, along with taking into account the current state of the market. (i.e. supply/demand, rising/neutral/falling market)
By pricing your home in line with a true market value you will be able to gain the highest amount of exposure.
Bridgewell Real Estate Group