Whether you are getting your home ready to sell or just want to ensure that you maintain its value, understanding the factors that can influence its value is important to ensure you get the best return on your investment.
Several factors come into play to determine a home’s value and when it comes to getting your home ready to sell, we all know that it’s important to make sure that it looks as good as possible to realise the best return on investment.
While some factors are quite obvious, others are less so and it is important to understand which factors you can change and which you should even take into consideration before you sign on the dotted line.
Here is our guide on factors that can influence your property’s value:
The location factor
When it comes to buying a home, many factors are on the checklist: the size of the kitchen, the colour of the walls, the number of bedrooms, and more. These are all elements that can be adjusted or improved over time. But there's one aspect of a property that remains etched in stone and can't be changed: its location. In the world of real estate, location is a crucial factor that impacts a home's allure and its ultimate value.
Let's delve deeper into why location matters so much in real estate and what factors to consider when scouting for the perfect place to call home.
The unalterable essence of location
You can renovate a kitchen, paint walls, or even add a new room, but shifting your property's location is impossible. Your home's surroundings, whether it's nestled in a friendly neighbourhood or situated near a bustling city center, play a significant role in shaping your daily life and the long-term value of your investment.
The unique landscape of location preferences
Real estate experts emphasize that there is no one-size-fits-all prescription for the perfect location. Location preferences vary widely across different towns, cities, and countries, influenced by the lifestyle aspirations of buyers. Some areas may experience high demand for walkable neighbourhoods offering efficient urban living, while others might favor the tranquility of suburbs or rural settings.
Let's face it, not all locations are created equal, right? Even if they seem to be cut from the same cloth, there's always one that stands out. Why is that? Well, it's all down to key factors like security, amenities, and accessibility. So, what exactly should you be looking out for when sizing up a location? Let's delve into this:
1. Quality of the area and lifestyle offered
Determine whether you prefer an urban environment with a vibrant cultural scene or a tranquil suburban setting with a strong sense of community. Assess safety, and proximity to essential facilities like schools, shopping centers, parks, medical facilities, public transport, and entertainment venues.
2. Property demand
Observe the condition of homes in the area and the overall cleanliness of public spaces. Consult property professionals to gauge the demand for homes in the area; a high demand coupled with short listing times and rising prices indicate a desirable location.
3. Proximity to employment centers
Locations near major employment hubs are often more appealing due to shorter commutes and reduced expenses. However, be cautious of noise, traffic, or pollution in such areas.
4. Natural features and views
Areas with appealing natural elements such as waterfronts, mountain views, or green spaces tend to be more desirable. These features enhance the quality of life and aesthetic appeal, positively influencing resale values.
5. Future development
Keep an eye on future development plans in the area. While new schools and convenience centers can boost appeal, projects like highways or massive malls might have the opposite effect. Always research development plans before buying.
6. Title deed and zoning restrictions
Check for zoning regulations, municipal ordinances, architectural guidelines, and building restrictions that could affect property use, renovation, and resale value.
7. Proximity to shops
You’re probably aware that buyers like to know how close a home is to a good school, but the same is true for grocery stores. And if your suburb has a good supermarket within a few blocks of your home, it will certainly add to your home's appeal.
8. Greenery in the neighbourhood
Living on a tree-lined street or very close to a well-maintained park can add to your home’s value. Likewise, if there are no mature trees in your garden or along the street and very little sign of greenery anywhere, it can also negatively affect the value.
Make sure that at the very least your garden is maintained - cut the grass, trim trees, and clean up any clutter and debris that might make a bad first impression on a buyer.
9. Sketchy neighbours
If your neighbours regularly keep their lawn mown and their pavements neat and tidy, it is likely to impact well on your home’s value whereas if their garden is messy and overgrown and toys are strewn everywhere, it’s likely to have a negative effect.
10. Future plans for the area
If your property is close to a planned and highly publicised project such as a new major road or housing development, you can expect to see your home’s value decrease because even if it will be an advantage once complete, long-term construction is always a deterrent for numerous reasons.
The property maintenance and renovation factor
When you are doing renovations it is easy to become lost in all your options and truly making a space your own - however, some projects might end up hurting your property value.
Bold colour schemes
You might love your burnt orange lounge and sunshine yellow kitchen but it’s very likely to put off many potential homebuyers if they think they are going to have to spend time and money redecorating. And if they do love the house, they are likely to lowball you, citing the redecorating costs.
Always stick to neutral colours which will appeal to the majority of people when you are getting ready to list your home.
Poorly fitted windows
If the windows don’t close easily or properly and if the seals are crumbling or worn, not only does it look bad, but it can also let in some nasty drafts and insects. A buyer is sure to want to get them fixed and is likely to reduce his offer.
Go ahead and do a walk around of your home and have a look at minor maintenance issues that you could fix before listing your home.
Too many customisations
We all like to personalise our homes to suit our tastes and needs, but when it comes time to sell, some of these customisations can negatively affect your price or even the ability to sell your home. For instance, if you update your kitchen with lower or higher countertops to suit your height, many buyers may ask for a price reduction — or pass on the house altogether.
Inconsistent upgrades
When updating or renovating your home, it’s important to be consistent otherwise you could risk a loss in overall value. For instance, you modernise your open plan kitchen but leave the worn 70’s linoleum flooring in place.
What to do when you want to sell a property
When listing a home remember to speak with a knowledgeable real estate agent who will help you understand the features buyers are looking for before you dive into upgrades or renovations to help your property sell quickly.
Undeniably, a property that lacks proper maintenance can quickly deteriorate, becoming outmoded and falling into disrepair. The inevitable conclusion? Such a home would command a lower asking price when it finally hits the market. But, the million-dollar question remains: what are the decisive actions homeowners can take to ensure their property not only maintains its allure, but possibly grows in value?
It's simple, yet demands commitment. The answer lies in the active pursuit of regular maintenance, diligent upkeep of necessary repairs, and enticing landscaping.
Ever considered how instrumental regular home maintenance can be in preserving its resale value? Not only does timely upkeep mitigate the risk of serious repair woes in the future, but it also establishes your property as a well-kept haven. Let's delve into those commonplace maintenance tasks you should be routinely attending to:
Chips, cracks, and holes
It can be easy to ignore a small crack on the wall or a patch of chipped paint here and there. The problem is that these small defects can either grow larger or accumulate over time, which can make a home look scruffy and uncared for. It is better to touch up any of these defects as soon as they appear rather than delay the repairs until they become a bigger problem.
Regular garden maintenance
The home’s exterior is so important. Not only is the first impression a buyer will get of the home, but it is also often the first place where damage can occur. Apart from looking after the lawn and doing regular weed maintenance, homeowners should be clearing out gutters and inspecting the roof to guard against potential leaks or water damage making its way to the home’s interior.
Cleaning that goes beyond the normal routine
Every so often, it is advisable to do a deep cleaning of the home. Get any fitted carpets professionally cleaned; do a deep clean of all cupboards to make sure nothing has spilled or caused damage; clean all windows; scrub the grout between the tiles, and polish any metal fittings (doorknobs, handles, etc.) that are looking cloudy.
It is also useful to keep an eye on home décor trends and to try and slowly update things where you can. Sometimes just small updates, like painting cupboard fronts in a new colour or replacing faucets, can make a big difference to how modern a home feels.
Because the kitchen and bathroom are two of the most expensive rooms to fix, updating these rooms should be considered carefully. Make sure that you are not overspending by ripping out the entire bathroom when replacing outdated faucets and a new lick of paint will do wonders. will become more important for the home to stand out from other similar listings.
Sellers who are tight on cash should focus on the small upgrades that can make a big impact, which could include:
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Replacing outdated faucets
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Replacing outdated light fittings
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Replacing dated fixtures, such as doorknobs, cupboard handles, fixed mirrors, etc.
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Repainting walls & ceilings
