What Factors Affect Your Property's Value
Supply and Demand
Basically the value of a property is determined by supply and demand. Economic market principles determine what value any commodity will have at a particular point in time. Generally, if there is a plentiful supply of a commodity and little or no demand, the price of the commodity is likely to be low, whereas, if there is little supply and a great deal of demand, the price will be higher. A market price will be settled at the point the amount demanded is exactly balanced by the amount supplied.
In the property market the supply of property is relatively fixed at any one time. In order to increase the supply, more properties need to be built. However, this process takes time. Demand, in contrast, can change relatively quickly. Therefore property values tend to be influenced by demand rather than supply in the experience of online estate agent mousesale.
Demand can be increased by changes in the economic circumstances of the buyers. If changes occur so that buyers have more income, for example if the basic rate of tax was lowered, this will tend to stimulate demand. If however, for example there was an interest rate rise, buyers incomes could fall, which would lead to lower demand.
Location, Accessibility and Aspect
'Location, location, location' is a common estate agent saying that online estate agent mousesale fully endorses about the three most important factors in market appraisal. It underlines the general opinion that location is the biggest single influence on value.
If you compare similar types of properties in different areas, you will discover significant variations in price. Different areas attract different demand for property. Some areas are more popular than others and as a result, buyers will pay more for the same property in a more desirable location. More desirable areas have a demand which always seem to outstrip supply, and consequently prices remain high.
The location of a property can also produce additional factors such as exposure to severe weather, or a breathtaking view. Susceptibility to severe weather would detract from a property�s appeal, yet a fabulous view would enhance it.
Accessibility has become a major issue in many parts of the country. This is usually accessibility to good transport links, but may be accessibility to other facilities such as a good school.
In the south of England, property values have long been recognised to be higher near to transport routes to London, e.g. near to railway stations on commuter lines. In other parts of the country it may be proximity to motorway junctions giving easy access to employment areas.
It is now widely recognised that where schools with good reputations are concerned, there is competition and hence demand for properties within the catchment area of such schools, with a resulting uplift in property values.
The age of a property can be a factor in value. If a property has historical connections, it can make it more valuable and imperfections such as uneven walls and sloping floors that would not be tolerated in a new property would perhaps be seen as quaint and charming.
Some older properties may need more maintenance and repairing than a modern property and a newer property would meet all the latest up to date regulations for example for energy efficiency.
Size and Type
Size does make a difference. Generally, the bigger the property the more expensive, because of the land occupied and although not everyone would see a large garden as a big selling point, generally it is seen as an advantage. Extensions usually add vale to property as long as they have been done well.
There are always exceptions to the rules but generally, the cheapest type of house is a terrace house followed by a semi detached house then a detached house, with bungalows a bit more expensive than equivalent houses.
The condition of a property both inside and out can have a huge influence on its value. Online estate agent mousesale will tell you that 'kerb appeal' (first impression from outside a house) is extremely important because buyers can be put off before they even get out of their cars. A house that looks well maintained from the outside is most probably well maintained inside and vice versa.
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