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Factors That Can Affect the Value of Your Property

Carlie Basham Posted on 12 Oct 2024

Factors That Can Affect the Value of Your Property

Hey there! At JKL Real Estate, we know that a variety of factors can influence the value of your property. Understanding these can help you maximize your investment. Here’s a breakdown of the key elements that can affect property prices.

Position, Position, Position

Location is the most significant factor influencing a property’s price. Consider:

  • Suburb and Street: Some areas are more desirable than others.
  • Position on the Street: A quiet cul-de-sac might be more appealing than a busy road.
  • Views and Outlook: Properties with great views often command higher prices.
  • Amenities: Proximity to transport, shops, and schools can significantly boost a property’s value.

Comparable Sales

Known as "comps," these are properties in your neighbourhood that are similar to yours and have recently sold. Your agent may provide a Comparative Market Analysis (CMA) to help value your home. Compare your property with actual sold properties, not just list prices. Comps should be similar in:

  • Position
  • Age
  • Condition
  • Size
  • Land
  • Number of Rooms

Market Performance

Supply and demand in the housing market can greatly influence prices. This varies by location. For example:

  • High Demand and Low Supply: Prices rise.
  • Low Demand and High Supply: Prices fall.

Property Condition

Maintenance plays a crucial role in property value. Two homes with identical features can have vastly different values based on their condition. Well-maintained properties demand higher prices, so keep your home in good shape.

Potential for Renovation

The potential for buyers to renovate and personalize a property can also affect its price. Even minor renovation potential can be a selling point.

Interest Rates

Interest rates impact property affordability:

  • Lower Interest Rates: Increase affordability, boost demand, and push up prices.
  • Higher Interest Rates: Decrease affordability and can put downward pressure on prices.

Infrastructure Projects

Developments like new roads, schools, or public transport can increase property values by boosting demand. Major infrastructure projects nearby can make a location more desirable.

In-Depth Factors

There are many more factors that can affect property value. For a personalized consultation, please talk to us at JKL. We’re here to help you understand and navigate these complexities to maximize your property’s value.

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