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Factors That Impact the Market Value of Your Property

Estate Agents   |   October 10, 2023   |   Wright & Co Estate Agents

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When you’re considering selling your home, you will likely be wondering “What is my property worth?”. The market value of your property can change quite considerably over time and what you paid for your home isn’t necessarily what you will get when you decide to sell. The value could have increased or decreased over the years. 

The market value of a property is influenced by several factors that range from its physical condition to the wider economic landscape. Understanding these factors can not only help you set a realistic selling price but also enable you to plan ahead if you want to purchase a new property. You may also have the opportunity to enhance the value before putting your home on the market. Below, we delved into the factors that can impact the market value of a property.

Location

When it comes to market value, location is one of the most influential factors. Proximity to amenities, the local schools, crime rates and the area’s reputation all play a significant role in determining the value of your property. Even within a town, the specific location of a property can greatly affect its market value, such as being on a quiet street versus a busy one or within walking distance of a train station. 

Property Size 

The size of your home, generally measured in square feet, is an obvious factor that impacts its value. Similarly, the size of your garden and driveway can also be important factors. It’s not just about the overall size either, the usability of the space matters too. Well-designed layouts that maximise usable space will often result in higher sale prices.

Age and Condition

Typically, newer homes will be valued higher, primarily because they require less immediate maintenance and meet current building codes. However, older homes that have been well-maintained and updated over the years can still be priced competitively. The overall condition of the property is a very influential factor on value. 

Economic Climate

Interest rates, inflation and the general economic climate can all have a profound influence on property prices. A booming economy with low interest rates can boost the property market, making it a great time to sell. If interest rates are rising, you may find that your property value increases alongside the cost of other goods and services too. 

Market Demand

Following on from the above, market demand can also impact property prices. In a seller’s market where demand outweighs supply, you’re more likely to get a higher price for your property. On the other hand, in a buyer’s market, where supply exceeds demand, you may have to reduce your price to make a sale.

Comparable Sales 

When valuing your property, estate agents will typically look at similar properties that have recently sold in the same area. These comparable properties, known as ‘comps’, provide an objective basis for estimating your home’s current market value. Looking at comps can help to prevent over or undervaluing your property. 

Upgrades and Renovations

Quality home improvements can add significant value to a property. Whether it’s a new kitchen, a renovated bathroom or energy-efficient features, these upgrades often result in a higher selling price. However, if you’re considering renovations, it’s key to remember that they don’t always guarantee a return on investment.

Visual Appeal

First impressions are essential when you’re selling a property. A well-maintained garden, a freshly painted facade or a new roof can enhance your property’s appeal and, in turn, its market value. How your home looks from the outside can also help to increase the amount of interest you get once your property is on the market.

Planning and Development

The local council’s future plans for developments could either boost or reduce your property’s value. Building a new school, shopping centre or public transport links could make your area more desirable. However, a planned motorway or factory could have the opposite effect and make your property less attractive to buyers. 

Putting a Property Up For Sale in Sawbridgeworth

Understanding the factors that can impact the market value of a property can help you set a realistic selling price and also give you the upper hand in the negotiation process. If you’re considering selling your home, it’s always beneficial to get a professional valuation from an experienced estate agent. They will have a good understanding of the current market and how much your property is worth at the moment. 

When putting a property up for sale in Sawbridgeworth, our team at Wright & Co is the best to contact. We have been offering properties in the local area since 1981 and we pride ourselves on providing realistic property valuations. Our estate agents will take their time to thoroughly research and all valuations are backed by several years of experience. You can book a valuation quickly and easily via our website today. 

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