One of the popular questions people ask Melbourne Property Valuers Metro is what they can do to increase the value of a property. Unfortunately, the answer to this question is not a straightforward one, as there are many factors that determine this.
Explained below are some of the major factors that can increase the value of a property:
The property location is one of the biggest factors that increase the value of properties. The value of a property located in an urban area will surely be higher than one located in a rural area. This is why it’s crucial to build a home in a developed area. In case you can’t afford to build in a fully developed area, you should go for one that is already developing.
Usable Space & Property Size
When your home has a high square footage measurement, it typically translates to a more usable space.
Since this usable space can be used for home additions like a home office, mother-in-law suites or accessory dwelling units, and other important spaces in the home, it is considered an added value to the property.
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Age And Condition Of Your Home
Typically, the value of a new home is higher than that of an old one. So, home appraisers rate your home based on how new it is. They also examine the home to see how much repairs it requires. The more repair a home needs, the lesser its value will be.
That being said, a well-maintained old home with a good foundation and functional systems can still be valued highly. An energy-efficient home can also rank high. Using double glazing Bristol windows increases energy efficiency in your home as the air pocket between the two panes of glass creates a seal against the outdoors and reduces the transfer of heat.
Similar Property Value
When the sale prices of comparable properties in your neighborhood increase, it can increase your property’s value as well. In fact, real estate agents or appraisers use the price of houses in an area to determine the listing price or property value of your home.
When there’s also a bidding war in a neighborhood, it enables homeowners to sell their homes at higher prices.
Updates & Upgrades
Strategic remodeling can help to increase your home’s value and marketability. Some people do this by adding extra features to the house, such as landscaping pieces, outdoor kitchens, patios, and swimming pools. Some even go ahead to remodel and upgrade some home parts, like the kitchen and bathrooms. An exterior painting can also add some value to your home.
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Nowadays, building a home requires following building regulations and getting planning permission. Building regulations cover the technical part of the construction process, while planning permission covers the property’s design, shape, and size. When you properly follow these regulations, it can improve your home’s value. On the other hand, your property can face demolition if you refuse to follow it.
The zoning of a home can also affect its market value. Zoning is a method municipalities use in establishing local laws which regulate how properties can be used in a certain geographic area. A property can either be zones for residential, industrial, or business use. The modification of zoning laws to allow future development is usually called upzoning. Studies have discovered that this method can increase a home’s property.
Interest rate is another major factor that can affect a property’s value. When the Reserve Bank increases loan interest, lenders will do the same. As a result, borrowers may need to pay higher monthly mortgage repayment. When a mortgage is expensive, it automatically means the property will be sold at a high price. However, a reduced interest rate can make property affordable.
Economic situations affect all areas of life, including property value. With a booming economy, people will be able to make more money and increase their purchasing power. This can encourage them to get a new home or invest in a second one. Eventually, it increases the demand and values of properties.
But in a situation where wages drop and the level of unemployment increases, the number of people that can purchase homes will decrease. This can cause a decline in the prices of properties. This is why you should keep yourself updated on the prevailing economic condition of your neighborhood before setting your property price.
It’s essential to consider the factors mentioned above when looking forward to increasing the value of your property. Also, if there’s any renovation work you have to do, do it before the value of your property is evaluated.