 |
What Other Factors Affect My Property Value?Property Value is affected by a myriad of factors. The big 4 after market trends and the real estate cycle are: 1. Geographic Location 2. "Direction" of the Neighborhood 3. Job Market 4. Your Competition
Geographic LocationSince property value is affected by location, even though it is out of your control, being aware of it can help dictate your selling strategy.All other things being equal, size of house, style, age and amenities, most would agree that an average house located in a suburb with a home owners association, within walking distance of stores, access to public transportation and good school districts contributes greatly to a premium valuation. Yet if your property is located in the country or far from groceries or in the inner city of a metropolitan area with trash littering the streets and a high crime rate don't panic or give up on selling your property.
"Direction" of the NeighborhoodJust look around and you most likely can tell if the neighborhood is on the rise or fall. Do properties need rehabilitation? Are common areas lacking the nice pruned and manicured look? Are the streets filled with pot holes and trash?This does not always refer to age. You could live in a 50 year old neighborhood, but if properties are well maintained and lawns are kept neat, value is held up. Another way to evaluate the direction of your neighborhood is a review of your comparative market analysis. Especially if you were able to get past sales. Are sales prices increasing or decreasing? Also are more houses for sale now than in the past? Know where your neighborhood is headed. The future plays a role in the value of your property. The State of the Job MarketHow does the state of the job market in my region of the country, city,etc. affect my property value?The job market is a significant factor in property value. If you live in an area with job growth, the value of your home will be higher since the demand for housing is increased. Contrasting examples of the job market affecting property value can be realized by comparing the area of the country where car manufacturers have shut down and people are moving away to Silicon Valley in it's hayday, when people were moving there so fast that home prices were skyrocketing. Knowing this information will help you plan when you advertise your property. Always remember to market the positive of your property. Who Is My Competition? How Do They Affect My Property Value?Your biggest competition is new home builders.Example: If you bought your 1400 sq. ft. home a few years ago for $200,000 and now it's worth $280,000 because of appreciation and the new 2000 sq. ft. homes down the street are selling for $240,000 with added incentives such as a pool included...be alert. We don't tell you this to scare you, but to inform you. There are many buyer's that prefer an established neighborhood. Also, sometimes new building in an area can even increase home values because it shows either revitalization of an area or continued growth. Remember, if your property is in a less than ideal location, less desirable neighborhood, stagnate or declining job market or you have competition, you can always add the option of seller financing to attract more potential buyers to your property.
Back to Real Estate Cycles
|
