Selling your home is an essential decision. Once you’ve made your mind, you also need to think about the financial picture. Definitely, you want to avoid selling too cheap. But how much is your house actually worth? Making that estimate is not easy, especially if you have an emotional bond with your home. We help you on your way with 7 important factors that can influence the asking price.
Two identical homes with different sales prices? Maybe they are not so similar. Research shows that many small factors, at first sight, impact the asking and selling price of a home that should not be underestimated.
Net Asset Value and Market Value
The first thing to distinguish between the intrinsic value and the market value is the home value. Net asset value refers to the amount that the home is actually worth assessed by objective measures. Market value will be responsible for the actual sale value of the house. In other words, what amount is a buyer willing to pay to buy a house.
What Determines The Value of a Home?
One of the crucial factors that decide the value of a home is its location. A house in a big city like Melbourne is worth more than the same house in a suburb in small city. The location itself also plays a role, such as the location in a quiet neighborhood or on a highway, at a beautiful location in the center, or in a new housing development on the outskirts of a city. Where there are objective measures to determine the value of the home, personal aspects are also involved. If someone views your home as their dream home, that person may be willing to pay more than the home is actually worth.
The type of home and the condition of the home are the other important factors that determine the home value. The surface area in the number of square meters also plays a role, as does the presence of a garden or balcony. The number of bedrooms also counts. The sustainability factor weighs in for the home value. For example, whether there are insulating and energy-saving measures. These vary from solar panels to a heat pump and from roof insulation and energy-efficient glazing. All these factors together determine the value of homes.
Location: City, center, suburb
Type of house: Apartment, family house, detached house, or bungalow
Surface: Number of m² house and number of m² land
Outdoor space: Garden, balcony, and roof terrace
Bedrooms: More bedrooms increase the value of the home
Sustainability factor: Solar panels, heat pump, and insulating glazing
Let’s go in detail on how these factors are effective on home value:
If there is one aspect that defines the asking price of a home, it is the location. Firstly, because prices can vary enormously between suburbs. Employment plays a major role in this. Homes on the outskirts of the city are becoming more and more attractive and therefore also increase in value.
Second, the neighborhood of your home makes a big difference while selling your home. Close to schools, shopping centers, or public transport? Then you can ask a little more. Living on a busy road or near an airport, on the other hand, can cause noise pollution, which decreases the value. The location is, therefore, a crucial element to take into account when determining a correct price.
3. Surface of land
There are three elements to keep in mind regarding the area of the plot. The buildable area, first, determines what type of building can be built on the ground. Is it a row house, or is there room for a fully detached house? Are there meadows behind that are part of the land?
The second element is the field width. The street width is especially important here. That makes a difference to the maximum dimensions of the facade. Finally, the planning regulations must be in order.
4. Habitable Surface
The size of the house itself is another parameter. The value of the habitable surface is determined by the quality of the finish and the materials used. Large houses are less popular, as providing a spacious house with energy is not cheap.
5. Construction Year
The age of a property is logically a determining factor for the value of a property. For example, the quality of the construction influences the asking price. Older buildings are not always easy to insulate, and that is bad for the energy bill.
6. State of The House
The current condition directly effects the home value. Is your house poorly finished? Does a lot need to be rebuilt? Are there any minor defects? These kinds of things can significantly reduce the price.
7. Characteristics of The House
Finally, certain characteristics of your home can influence the price. The materials used are important: parquet and double glazing, for example, increase the value. Even a garden that is oriented to the sunny side increases the price. Don’t forget to include extra luxury options: a swimming pool, the alarm, the garage, solar panels that directly affect the value of your home.
With these factors, you can already make an initial estimate of the value of your home. Know that correct pricing is extremely important. Of course, you want to save a nice penny, but at the same time, you don’t want to scare potential buyers with too high a price. So, it is worth considering to call on a real estate professional.
Expert real estate agents can estimate the value of a property well, thanks to their years of experience, especially when they are familiar with your neighborhood.
Does all this info make you sigh? Do not worry. Local real estate agents in Clyde North and surrounding suburbs can help you set a realistic price. Their experience of selling similar properties in the region and having an idea of what prospective buyers are willing to pay makes all the difference to gain a winning sale. The right agent can provide you with an appraisal report or well-founded valuation.