7 hidden factors that influence home value

Here's a quick checklist that clarifies the hidden aspects that determine prices of homes

10 May 2018, words by Ankita Bhowmick in The Market

Hidden factors that influence home value

1. Privacy

The amount of privacy that a home offers its residents with influences its value to a great extent. A property which has a backyard exposed to neighbours or located too close to its neighbouring homes is bound to affect the privacy of its residents and they won’t be ready to shell a good price for such a home. If an owner of a home wants to be benefitted with a good selling price of his home, it is important that he makes sure that his home is complemented with complete privacy.

2. Condition

For a property to be able to fetch a good value, it is of utmost importance for it to be in a great condition. A home having issues like problems with structural timber, leaks, plumbing errors and broken tiles will influence the price of the home to a great extent in a negative way. Therefore, the respective owner should make sure that the home is in excellent condition so that it can fetch him a good selling price.

Another major aspect which affects the value of a home is its age. Many a time when a particular property gets old, its market value comes down and it becomes difficult for its owner to benefit from a good resale or rental value. Therefore, a trend of upgrading and remodelling of homes have started to grow in the market. A home that is renovated to a high standard will fetch a good price for the owners than the ones that haven’t been upgraded or renovated at all.

In order to earn some more bucks out of a home, a lot of owners furnish their homes before selling them off. A well-furnished home command a higher price point for up to 2x times the original value, according to Luxhabitat. Prices of furnished homes also vary from one another based on their furnishing. Luxury homes are generally furnished with branded kitchen appliances, besides good quality furniture, which makes them more expensive than the ones which lack high-end furnishings.

3. VIEW ANGLE FROM BACKYARD

View angle of a home is one of the hidden factors that majorly influence the value of a home. The view angle of a home defines the angle that it opens up to the scenery outside from its backyard. Measured in 0 to 180, 0 indicates that the home does not offer any scenic view from its backyard and 180 indicates view from every angle. A home that offers a wider view angle from its backyard is bound to be priced higher than similar homes in the same community that offers a comparatively narrower view angle from its backyard.

4. SERVICE FEES

Some communities charge higher service charge than others, which ends up influencing its value. As a home with higher service fees leads to lower yield, it is an important factor when it comes to the decision-making process of a buyer. Residents generally want to pay the lowest amount possible and therefore repel from those properties which ask for a high service charge, affecting its price. Those homes that do not ask for a high service charge tend to be more in demand in the market and can fetch a better price than others.

5. PARKING SPACE

A home that offers multiple parking spaces is always priced higher than the ones that offer a single parking space or no space at all. As a home buyer is more likely to have a car for himself and his family, he won’t mind paying for a home that eases him, his family or his guests from the tedious job of finding a parking space. Also, an owner can choose to give one or more parking spaces for rent in case he does not need them and can benefit financially.

6. CURB APPEAL

Curb appeal is the outer appearance of a property, which can determine the price of a home to a great extent. A home which features a well-maintained garden, backyard, swimming pool, amongst others, appeals to the buyers in a positive way. A home with a good curb appeal can always be priced higher than the others as it will fetch a good amount as buyers tend to spend more for a property with good outer appearance over ones that are neglected and do not look impressive on their interiors.

7. VAASTU OR FENG SHUI COMPLIANCE

Believed by many to be all about ensuring that a home encourages health, coherence and prosperity, Vaastu or Feng Shui is preferred by a lot of home buyers, especially in Asian countries. Therefore, a property that features these elements are easy to be sold off and can also ask for a higher price than others as there will be a lot of buyers in the market who will be ready to pay some bucks more for a home that features these elements.

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