Factors Affecting A Real Estate Property Value
Purchasing real estate property represents a momentous economic decision in people’s lives. Each property has its specific market, so it requires a specialist who can assess the prices in each type of property to get a good appraisal.
Many elements affect the value of a land: its location, use and type of land, terrain, environment, and services in the area, among others. These factors should be considered by both buyers and sellers when fixing the price per square meter. Appraisers and real estate agents often examine these factors as a whole, rather than assigning a value according to an individual factor. The assignment of value to a house does not follow a precise formula. The quality of construction is always considered as one of the relevant factors. However, selling a high-quality building with top quality facilities, but very far from the central hull or the main accesses, is a challenging task since the final price will surely depreciate and in some cases, you cannot recover the investment. Consulting a real estate firm will give you access to the best real estate lawyers in your area. You will be assured that your property or the real estate that you will purchase will be processed and assessed properly.
The main factors that affect soil assessment are:
It’s distance to the urban center, road connection, its surroundings. The location is a variable, “unchanged” in the evaluation of purchase of all real estate. For example, land on routes or avenues increases a higher price about a lot that is on an internal street.
Another factor is whether the lot is in the corner or the middle of the block. A corner lot will always be worth more than a lot on internal streets.
The property value will be affected if a terrain is not uniform, that is to say, it has no proportionality in its measurement of the front with its bottom, or its shape is not square or rectangular. It will have repercussion in its “optimum” constructive use in applying the norms in force in the Regulatory plans of the municipality. In this case, the land will yield less for the construction of products to be commercialized. Therefore, the price of the land should be negatively impacted in the form of balancing the risks versus profitability of a commercial project. The dimensions of your property should be properly reflected in your title. If you are going to purchase a land, you can hire a title service company to make sure that there is no issue between the declared dimension to the size indicated in the title.
Services and amenities
As previously anticipated, the values of the real estate also depend on the public services offered by the property or the environment where it is located. You can, therefore, mention the educational, commercial, sports, cultural and entertainment services, institutional and banking, security, health, public transport, green spaces, access roads, and communication.
Whether or not a property has such services will influence the final price of the property. On the contrary, factors that can negatively affect the price are flood zones, unpleasant odors, annoying noises, dangerous situations, environmental pollution, etc.
The quality of construction of a building also affects the price of the property. No matter how well located the house is, its value will be severely affected if the house needs to be demolished. Types of materials used will also affect the value such as whether the roof is made of sheet metal or tiles, the thickness of the walls, the openings, the quality of light fixtures, faucets, installations, etc. All of these are factors taken into account at the time of valuation.