As a property owner, there is no question that you work hard to keep your house as up-to-date as possible. After all, you want your property to retain its value and, hopefully, go up in price. Whether you’re looking to buy or sell, it helps to be aware that there are a number of factors that can play a role in a property’s value. Keeping these in mind can help you gauge just how much you could get if you decided to sell. Here are some outside factors to consider.
Proximity to Commercial Areas
Ask the vast majority of homebuyers, and they will tell you they want a place that is quiet and peaceful. Collateral Analytics describes how if a property is located near a commercial area, it will likely sell for less simply because no one wants to live that close to a noisy area. There are many potential homeowners with small children who would be concerned about the traffic hazard. All of the increased foot traffic can create a problem for homebuyers who are concerned about security.
If you are considering buying a property that seems to be priced surprisingly low, there’s a good chance it’s located in a high-crime area. It’s no surprise that crime rate affects the value of properties in a negative way. Do Hard Money explains that there are issues with properties that should have us walk away from it altogether. Some of those include a nearby murder, awful crime rate or other problems that complicate the deal to such a level that we can’t possibly predict how much the rehabbed property will sell for.
It’s also important to note that not all property crimes will affect housing prices. The type of crimes that have the worst effect on property values, besides homicide, are things like robbery and aggravated assault.
The Type of Market
HousingWire talks about how the type of market can play a role in the housing prices of a local area as well. First of all, if there are a large number of buyers competing for a limited number of homes, you would call that a sellers’ market. If there are a lot of homes and few buyers, it’s a buyers’ market. Property values will be low in an area with a lot of homes for sale and few buyers.
If you keep these factors in mind, you can get a clear idea of whether your property is slated to go up or down in value. You can know whether you need to go ahead and sell or just sit on the property for a few more years.