When you consider comparison and calculation of residential real estate value, it will be simple to sell or buy one. How much worth is of your residential real estate? A lot of different factors decide the worth of a house. Below are the key factors that impact the prices of real estate:
Location
The location of residential property is one among the key things that affect real estate values –
- Location of neighborhood
- Traffic noise
- Industrial areas nearby reduce the value
- Close proximity to offices, school, hospitals, grocery, shopping malls, beach, library and public transportation will ensure high real estate values
- High end neighborhoods increase the value
A great residential property in a typical neighborhood can decrease its value really. Thus, positioning of property affects the residential property values greatly.
Good Infrastructure and better connectivity
Infrastructure is known as one among the most noteworthy factors in India which affects property price to go upward. The properties that are situated in very close proximity to the developed infrastructure like flyovers, roads, malls and airports to name some sees faster cost appreciation than the ones that are in requirement of excellent infrastructure.
It’s a known fact that superior connectivity influences the investors and the end-users to purchase property. As a result, developers are launching luxury projects in the areas that have superior employment catchment.
Area
Valuation of a residential property is slower in the areas where availability of land parcel for real estate growth is there. While in the areas where paucity of land is there, sees higher valuation.
Area size
Landscaping of the residential area also affects its values. The factors to consider include:
- Space between the property and next house
- Front garden space
- Backyard space
- Built on slopes or flat land
- Enough privacy
Exteriors
Exterior of the residential property is very imperative. If you like the exterior of the property to buy, you’ll not have any problem while selling same to next buyer to make investments. If the exterior isn’t great looking or it has deteriorated ever since you purchased it, you may want to consider improving it before the same. In case the other buildings within the same area have an abandoned look that too may affect the overall property value.
Building construction
Except for location, infrastructure and area, valuation of a residential real estate also depends on the things such as architecture, design, layout, specifications of used materials, life span of building and a lot more. Adding to it, input cost, height of building, waterproofing and quality are among other factors that influence the property price in India.
House Itself
Most of the residential properties value is affected by their particular features such as number bedrooms. A single bedroom house will have a less chance of sale in compassion to two bedroom property. In a case like this, if the house is an independent real estate, then you might want to think about expanding it. Furthermore, you’ll have to think whether the expansion is feasible or not? In addition, if fittings in the residential property are updated or old, the property value is certain to decline in comparison to homes with completely updated fittings. Therefore, outdated fittings in any residential property can reduce its worth significantly.
Economic Factors
Different economic factors are known to affect residential real estate values. A few of them include:
Interest Rates: When rates of interest rise, the costs of variable mortgage payment also rise. The higher interest rate makes real estate investments lesser attractive.
Supply and Demand Ratio: If the demands of real estate increase more than supply, then the real estate value goes up.
Economic Growth: As economy grows, wages and salaries also increase. It increases the buying power of real estate as well.
Amenities
In present scenario, home buyers are much more attracted to the residential properties that provide modern amenities. Real estate valuation together with amenities and good infrastructure come with a larger price tag in comparison to those with bad infrastructure. Besides, the property valuation depends highly on the convenience of appropriate amenities together with comfy living space.
Custom made properties
The customized properties are costlier than conventional buildings always. The property evaluation for customized properties is higher since it fulfils customer’s requirements. For instance, a few home buyers might want to update their kitchens with better flooring, best quality paint, or other personalized modifications. These things make the property price to go upward.
A few factors like its location, economic factors and proximity are out of your hands, while some such as adding curb worth is in your hands. For instance, most potential buyers would select airy and light rooms over darker ones or the ones with modern fittings instead of outdated ones. It’s very significant to be realistic while deciding your residential real estate value to ensure a fast and fruitful transaction.
