When a homeowner sells a house or has an appraisal, there is a certain level of certainty involved. One would like to think that he knows the value of his property. If offers or appraisals come back low, the homeowner will likely want to know why. Knowing the real factors affecting how a property price is determined will help homeowners avoid surprises when the results come in.
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Size of Lot and Structure
One of the basic factors involved in determining the value of a residential property is the specific size of the lot and the structure itself. Obviously a four-bedroom, two-bath house is likely to be more valuable than a two-bedroom, one-bath house in the same location. The amount of land the house is on can make a drastic difference in the price the property will bring. People tend to prefer large yards and personal space to houses that are crammed together on tiny lots.
The condition of the house will make a significant impact on the property value. A house in disrepair with a leaky roof, stained carpet or simply out of date style is likely to be worth less than the same house in good condition or that is more modern.
The extras associated with a residence will seriously affect the price a person is willing to pay for it. If a home has a garage, a pool, a barn and fenced pasture for livestock or any other non-essential bonus then a higher price may be warranted from buyers seeking such extras.
One of the most powerful factors affecting the selling price of a residence is the opinion of the locals. Public opinion about the neighbourhood or town's reputation will drastically improve or reduce the potential for a good offer. In some instances it may not matter if the public opinion is fair, because perception is reality in the real estate game.
If it takes an hour to get to the nearest grocery store or hospital, it will not do a lot to improve the selling price of your home. However, if your home is in a quiet neighbourhood that is a mere 10-minute drive to all the modern conveniences, then it may help increase the amount a buyer is willing to pay. Often the key is finding a potential buyer that wishes to be close to a certain area for work or another reason and showing them your house that is just down the road.
Curb appeal is the look of the house from outside. Potential buyers who drive by a particularly attractive property may fall in love with a new home before they ever set foot inside. This powerful first impression can lead to a higher offer.
When homes around yours sell, the selling price of other homes in the neighbourhood is taken into consideration when an appraisal or offer is made. If other houses in the neighbourhood have sold for an average of £97,500, it is highly unlikely that you'll be able to get £195,000 for yours unless it is far more impressive than anything else in the area.
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