Evaluating property and its true value, whether you are looking to buy a home to live in or as an investment property, comes from detailed market research over the past 12-months. This will then give you a good indication of the property’s worth in real terms and relative to the current economic climate.
What Do I Need to Look For When Evaluating the True Value of Property?
Typically, a property’s value increases when it is situated in a favourable area, is near to amenities, and is of good quality. Property size, land size and additional features, such as home improvements, also add value. Let’s look at the most common aspects encountered that add value to a property.
1. Property location. Look at where the property is located. Ask if it is in a desirable suburb, near the CBD and amenities, and close by the seaside/ water, and parklands. Is the area being developed and is new infrastructure being introduced? If you answered yes to these questions, then it is highly likely that the property is worth more.
2. Property type. Is the property single storied, double storied, a unit, apartment, townhouse or a house? Property types dictate to value. For example, an apartment that is at the top of a high-rise building in a city location, is usually referred to as a penthouse, and can be worth a great deal.
3. Age of the property. Is the property new, near new, more than 5-years, 10-years or 15-years old? The younger the property is and the better condition it is in, the greater the value.
4. The property size. The general rule of thumb is the more square metres, the more worth.
5. Lot size. The bigger the lot, the more value.
6. Number of bedrooms. The more bedrooms, the greater the value.
7. Number of bathrooms. More bathrooms means more value.
8. Number of outside parking spaces. If a property has adequate parking this is viewed as adding additional value.
9. Number of under main roof garaging. Undercover parking is considered as a value-adder.
10. Additional features. Does the property have a pool, gym, rumpus room, outdoor entertaining, landscape gardens, irrigation system, pergolas, spa baths and sauna? If so, these aspects can add value, this is providing that these features are in good, working order and condition. If they’re not, then they may reduce the value of a property as they could be costly to repair.
11. Quality of fixtures and fittings, home design and buildings. Designer fixtures and fittings and buildings are generally worth more. This is because the initial cost is often more when they are first purchased or built.
Are you looking to buy a property? If so, contact eChoice and find the right property for YOU
Written by eChoice