Factors influencing your property valuation in India.
A house is made of walls but a home is made of dreams. When you are looking for a property, new home or starting a home renovation, it is important that you understand the factors influencing the property valuation. To aid your decision-making process, listed below are a few factors that can affect the appreciation or depreciation of a real estate investment or the property valuation.
There are many factors that can affect the price of your home. From the location and connectivity to the basic amenities and the upgrades made, anything can affect the market value of your home. Here are the few major factors that can appreciate or depreciate your home value.
The top factor that can be decisive in determining the value of your house is the location. Where your house is located, whether it is nearby schools and higher education institutes or not, what are the nearby medical facilities and how connected the area is in terms of transportation; all these play an important role in raising or dropping the market value of your house. Proximity to local markets, shopping complexes and, recreational centers also plays an important role in determining the value of your home.
House Age And Renovation
A property’s age doesn’t reduce the value of your property. However, the condition of a property makes a huge difference. An old but well-maintained property can achieve a valuation that is the same as that of a new build of equivalent specifications; sometimes, even higher. Keeping your potential property well-maintained will keep its value high. When you take out home loans, you should remember that the property must retain the level of valuation at the beginning of your loan, or a higher level of valuation..
Lack of parking spaces is increasingly becoming an important issue in metropolitans as well as in cities and towns. According to a recent study, having a single parking space added to the house can increase the property value by up to 5%. The reason being that 90% of the populace today has a vehicle of their own and would certainly show more interest in a property where they can park their vehicles safely than the ones that do not offer this facility. No wonder that parking space availability act as a major decisive factor for the price rise or drop for residential & commercial properties for sale.
In any country, population densities move to areas that are more attractive. This is a slow process and can be difficult to predict or identify. But, one must understand how this phenomenon may affect the value of your property. If the employment hub of a city moves from the center of the town to the outskirts, half of the city will have to travel farther to work, reducing the value of a real estate property in terms of its employment hub factor. The other half of the city in turn receives a boost to their property values for being closer to the employment hub.
Distance From Commercial Hubs And Industries
A house located near a commercial hub attracts more buyers than one that is at a located far away. Buyers seek a house in a location that is easy to commute from their offices, and if your house is near a commercial hub, more buyers would be interested in the property. So, if your house is near an IT hub or any other business and commercial hub, your house value would certainly increase. Contrary to that, if your house is located near an industry, chances are, it may have a negative effect on the property price. Industries give away toxic pollutants in the surrounding and even make a lot of noise; therefore, buyers tend to stay away from houses near an industry which depreciates the value.
History Of The Place
If your home has had some history like getting flooded, pest attack or fire incident, it may attract fewer buyers as they may doubt the strength of the foundation. Other negative events like a suicide, criminal activity or sudden death may also be a reason for buyers to put a low price for your property. Any negative event in the history of the house can make your home a hard sell and depreciate its value.
While we have control on some factors, others factor cease to be under our control. Know these factors and get your home smartly valued to fetch a good deal for your property for sale in India.