Before getting into the subject of the factors that affect the market value of a real estate, you should know first that the market value of a real estate property and its price are two different things.
Not all properties with high selling price have high values. A landlord could be asking for a price that is way too high or way too low to the property’s real value.
There are multiple pricing strategies that will help you appraise your property right and gain wealth from your real estate investment, but first, you should know the factors that affect the market value of a real estate.
So before you go and put your property for sale, you should check the list below of the factors that drive the market value of a real estate property
A property’s location affects its value greatly as some areas are worth more than other areas.
A property that is located in the city centre will definitely sell for more than let’s say an apartment on the edge of the city and away from the centre of the action.
Properties that are located in a vital location where everything that fulfils your needs and requirements is only a walking distance away will definitely have higher values than properties that are completely isolated or located in a deserted area.
2- Amenities and facilities
We all that properties located in gated communities have high value than apartments located in a stand-alone building.
The reason behind this is because these communities offer residents offer residents a wide array of top-notch and world-class services and amenities that attend to the resident’s everyday needs and wants.
Real estate properties that offer extreme proximity to services such as shopping malls, cafés, restaurants, cinema complexes, supermarkets, schools, hospitals, pharmacies, subway stations and buses will always have a higher value than properties that are far away from these facilities.
Potential buyers like to live in a place that offers the concept of “A city within a city” and they will pay what you ask for without negotiating the price for they are buying comfort, happiness and security.
3- A view
A beach view/ sea view/ Mountain View apartment will definitely sell for more than an apartment with a blocked view of buildings, towers and other structures.
Buyers like to wake up to a view that sets their mood straight and gear them up for a hectic day.
An apartment that offers residents a nice view is one that will have high demand, hence, affecting its value.
The physical status of a property affects its value more than you think. Put yourself in your buyer’s shoes and imagine buying a property with a damaged plumbing system for instance, would you pay a high price to purchase such property?
Before investing in a real estate property, you should check the property’s physical status and whether it will require you to do repairs or not.
Let’s face it, any upgrades and repairs made will always recoup more than 80% of their value but can your budget afford such repairs?
Property’s that require major repairs will always sell for less and that is why the majority of investors purchase such properties then flip them and sell for a high price.
Yes! Buyers are willing to be extra for a ready-to-move-in apartment that is well-prepped and repaired than apartments that need lots of work and effort.
5- Floor level
Savvy buyers prefer to purchase higher floor level apartments in high-rise residential towers for they provide unique views than lower level apartments and they are also away from all the noise that low-level apartments are known for.
Top floor apartments aren’t everyone’s cup of tea, nonetheless, they a new trend that provides residents with a luxurious and private lifestyle that low floor apartments.
It’s a known fact in the real estate market that an apartment’s value goes up as you move onto a higher floor.